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Chris Capre
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Chris Capre is a professional forex, index futures and commodities trader, specializing in Price Action & Ichimoku trading. Chris applies his methods to the markets both intraday and medium term swing trading, and has been trading for over 13 years. He is also the manager for a private fund... More
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Trading Price Action and Pivot Points
  • Gold Engulfing Bar Followed By Inside Bar | Oct. 24th 0 comments
    Oct 24, 2012 7:39 PM

    Getting pummeled every which way but loose, Gold resumed its sell-off today, now at 6 week lows and barely holding above $1700. I am noticing how the buybacks have been getting shorter and weaker in angle each time. This would generally indicate a weakening buying or counter-trend presence. But that has also been accompanied by weaker sell-offs each time, with the latest being the weakest. This culminated in a large engulfing bar followed by an inside bar.

    Perhaps now that most paper bulls are flushed out, the market will start to climb. If not, then aggressive selling should resume in the absence of paper longs. One other scenario I can imagine for the sell-off would be a large fund needing to cover for some bad positions, and started dumping Gold en masse.

    It doesn't quite make sense in a money printing environment, but regardless, bears can watch for intraday price action pullbacks towards $1713 and $1730 for areas to sell, while bulls can look towards $1697 and $1665 before adding longs. Short term its still bearish, but I suspect the current down-leg is weakening.

    (click to enlarge)engulfing bar inside bar price action oct 24th

    For those wanting to learn to trade price action, access to the traders forum, lifetime membership & more, visit my Price Action Course page here.

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