Short-Term Red Flags for Gold: Key Levels to WatchAs you know, I’ve been bullish on Gold for the past two weeks, anticipating a rise to around 2760 and potentially a new all-time high (ATH).
However, while my overall bullish outlook remains unchanged, there are some short-term red flags to consider.
Looking at the posted chart, we can see that yesterday, Gold broke above the channel’s resistance. Typically, such a breakout would lead to upward acceleration, at least in theory. Instead, the price touched the 2763 resistance level and then began rolling back down.
If Gold breaks back below the previously broken resistance, we could see a retest of the lower boundary of the channel, which sits around 2720 (a confluence support zone roughly 300 pips below current levels).
In conclusion, unless bulls can successfully push above 2760, the likelihood of a correction increases. While it’s a risky play, aggressive traders might consider shorting the market under these conditions.
