Facts:
Recommendation:
Trade: Short position on GOLD at market price
Targe: 1850, 1790
Stop: 1915
Opinion: The gold market started with an upward move, but sellers regained control at the $1900 handle, where the upper limit of the broad downward channel is located. This level is also marked with previous price reactions. Daily candlestick closed with a long upward shadow and the bearish body which may herald a downward move. According to the classical technical analysis, as long as price sits below the resistance area at $1900, a continuation of the downward move looks to be the base case scenario. I recommend going short on GOLD at market price with two targets: 1850 and 1790. I also recommend placing a stop loss order at 1915.
A time horizon for the recommendation till reaching target or stop loss price.
- Gold price bounced off the key resistance at $1900
- Local double top formation surfaced on daily chart
Recommendation:
Trade: Short position on GOLD at market price
Targe: 1850, 1790
Stop: 1915
Opinion: The gold market started with an upward move, but sellers regained control at the $1900 handle, where the upper limit of the broad downward channel is located. This level is also marked with previous price reactions. Daily candlestick closed with a long upward shadow and the bearish body which may herald a downward move. According to the classical technical analysis, as long as price sits below the resistance area at $1900, a continuation of the downward move looks to be the base case scenario. I recommend going short on GOLD at market price with two targets: 1850 and 1790. I also recommend placing a stop loss order at 1915.
A time horizon for the recommendation till reaching target or stop loss price.
Note
The volatility in the gold market has recently declined and the precious metas has been trading in local sideways move. However, looking at the H4 interval, one can see that price is once again testing the major resistance at $1900, which increases the risk of a breakout. In such scenario, a way towards further increases will be opened. Gold would then have a lot of room to strengthen as next important resistance level is located at $1955. On the other havd, if sellers manage to halt advances here, declines may deepen towards the $1850 level, which is marked with earlier price reactions and lower limit of the 1:1 structure.Trade closed: stop reached
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.