Directly from Vladimir Ribakov's Live Trading Room
After the aggressive drop we had two days ago lets see what opportunity we have for the Gold. Well first of all we will be looking to the Daily charts to join, we are looking for a bearish signal here to join the recent drop. Price just broke and is hold a major previous support at 1715. So what should we look for. Well price could create some sort of flag pattern here for the next couple of days. We can we see that the RSI is holding the 50 line so we are still bearish. So look for this flag to be created for the next 1-2 or maybe even 3 days and a break of this flag pattern will give us our opportunity to join and we will be aiming the support at 1670 and if price breaks this level we could possibly see price reach the 1615 area.
Gold trade setup for March 02, 2012
Gold Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3