My bias is neutral or slightly bearish for the short term. Usually any inversion or a continuation patterns takes some time to develop. So, in the attached chart we can see some confluences in the price action that invite to the following reasoning:
1. Red dot line at $1300 suggests a significant resistance, needed to be broken for the price to reach $1350.
2. Today's candle suggests at least one pause on the rally.
3. Only a very strong trigger can convince market participants to break the $1300 red dot line, such as military conflict with North Korea. We may be wrong, but this does not seem likely.
4. Developing this idea may lead to a short-term correction, down to the green dot line at $1260, or so.
5. As a technical movement, new longs can arise at this level of $ 1260, pushing until ~$1300.
6. The test of this level will probably be decisive. Will the resistance be broken or a double top be formed?
7. Given the hyper-reactivity of gold in the face of geopolitical events, we do not dare to do so much futurology.
8. A short position for swing trading can be taken now, having $1260 as a goal, stop loss at bit above $1300, for an interesting R/R take.
Trade closed: target reached
Stand aside, for now.
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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.