GOLD - 1920 Target Confirmed, But Don't Chase Price
Updated
We clearly underestimated this current upswing and did not expect gold to break 1835. We expected one more dip to 1770 level then a breakout to the upside follows. Yet market proved us wrong by breaking 1835 today and reaching as high as 1868 after unexpected CPI number came from the US. So we are back to the original plan with our bullish case for gold to 1920-1950 level by year end if you follow our tweets.
Gold surely has its eye on next target 1920 after breaking important resistance 1835. However, do not chase the price as it goes up really fast after shocking news. After digesting the shocking news, gold will probably temper down a little bit. Traders will take profit and big boys will shake out weak hands, the ones who chase the price up.
Technically, you can see gold is repeating its algorithm pattern in April. So we suspect that after this big up, gold will retrace back to 1820-1835 level before making its big upside move toward 1920-1930 level in the next 2,3 weeks.
We would prefer to buy dip. However, it is not a bad idea to short gold from resistance 1865-1875 back to the support level 1820-1835. Our recommend trade is to sell gold around 1865-1875 and target 1825-1835.
Gold surely has its eye on next target 1920 after breaking important resistance 1835. However, do not chase the price as it goes up really fast after shocking news. After digesting the shocking news, gold will probably temper down a little bit. Traders will take profit and big boys will shake out weak hands, the ones who chase the price up.
Technically, you can see gold is repeating its algorithm pattern in April. So we suspect that after this big up, gold will retrace back to 1820-1835 level before making its big upside move toward 1920-1930 level in the next 2,3 weeks.
We would prefer to buy dip. However, it is not a bad idea to short gold from resistance 1865-1875 back to the support level 1820-1835. Our recommend trade is to sell gold around 1865-1875 and target 1825-1835.
Trade active
We went short half posy @1865 today.Trade closed: target reached
Target reached at 1815.
Related publications
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.