Gold-sell
Corrective Price Action In GoldGold similar to oil conitnues to drag its feet and move in an ascending (bearish) pattern by
making higher highs and then correct strongly downward. This zigzagging price action OFTEN
indicates WEAKNESS. Gold is ALWAYS mistaken to be a safe haven when times are tough for the
general markets. Well this is NOT the case and has not been for most of its modern history.
I believe this misrepresentation of gold comes from the price action of the 1929 crash where gold
I believe did move contrary to stocks at times. BUT it does not concern us what happend 90 years ago!
Gold prices I believe were fixed back then and so its outcome had to have been different. What does
concern us is what happened in 2008 where gold fell just like any other asset. And this continues to
inspire confidence that this will NOT BE THE DEFENSIVE ASSET EVERYONE ELSE THINKS GOLD IS!
It is an asset just like oil or stocks. And in hard times it too will fall. The price action here reminds
us that this will likely be the case and sooner than later. For now we remain neutral and wait for further
confirmation before well sell gold.
XAU/USD SellsGold sells into the FVG. Entry is a on a wick rejection from the 78.6% retracement after the BOS to the downside. Another confluence was that our entry was inline with the current OB in the market for the last downside push and we just broke the daily low which has invalidated the current range and presents a bearish outlook to me.
Gold (XAU) Sell idea Last week most USD pairs and indices fell in price drastically which resulted in Gold rising past the key 1820 level. However, it appears that the momentum has slowed down for Gold as there has been a failure to reclaim the 1830 level. Because of this and the fact many USD pairs and Indicies have seen some buying activity at their low levels, it might mean that Gold will fall in price as the USD starts to strengthen again. The target of this trade is at the recent resistance level of 1814, proceeding this, 1804 and 1796 are final targets. The stop loss area for this trade is located in the 1827 region.
Gold Short Idea Gold has been no stranger to volatility in the last few weeks. There was a sell-off towards the levels of $1762, but now the price has rebounded towards the $1787 resistance zone. Gold's rally failed to surpass the $1800, in the short term I believe the trend is bearish. The RSI levels on the 4hr chart are overbought at 94.82. The target is the previous support level of $1770-67. The stop-loss area for this trade is located just above the recent high at $1788.