Gold tumbled on vaccine news
A good news came in the early hours of New York session about covid-19 effective vaccine. Unfortunately, proved to be a worse nightmare for Gold retailers and a massive sell off occurred. Now lets have a look on technicals. Gold rally was going fine and made a high of 1965$ for an ounce supported by support at 50 Day EMA at 1935 which in terms of technicals seems to be a breakout towards 2000+ levels. Previously 1850$ (100 Day EMA) proved as invulnerable support since 12th of aug 2020. Gold made multiple attempts to break that resistance but failed and bounced back. However, Gold at the moment resting on 1850 level. With strong fundamentals this rock hard support looks fragile and firmly suggests gold prices to fall further at lower levels. Next strong support area is 200 Day EMA. If Gold fails to sustain above that price then it would be an end of uptrend and we will be going in consolidation phase for sometime at lower levels. Personally im looking for shorts now at any reasonable price correction. Goodluck with your trades.
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