Honestly, this is my favourite commodity, but at the moment it's being on its bad behavior and needs to put in the corner. And by corner I mean leave it for now.
First of all, this one needs to decide what the hell does it want to do. Up or Down?
So it's coming down towards the bottom trend line (the closest green box on the chart) and we just might see a touch of that. Now, the level looks really good for getting broken, but Gold is getting closer and closer to a squeeze. If that's true, then ideally it would be great to see a break lower to test the even lower trend line that is dragging from the end of 2015.
Gold recently was at 1295, which is like a magic rubber wall where Gold hits it, stretches it and then slingshots back to the lows.
So, I will a be a strong SELLer with a careful STOP initially, if it breaks and stays below the first trend line. If it will do that, then a lot a of traders will jump in on the action. This will, probably, lead to a little reversal to the upside to take out all the STOPS of the SELLers. Certainly, you decide what STOP to put for yourself, but just be aware that sometimes, in situations like these, we can see a very long tale at the end of the second candle and small body, because unwanted traders are getting taken out there.
Anyway, long story short, I would like to see a good sell-off to test the $1200. I know it's a bit aggressive, but with this market, anything is possible.
As always, keep an eye on the price action!
First of all, this one needs to decide what the hell does it want to do. Up or Down?
So it's coming down towards the bottom trend line (the closest green box on the chart) and we just might see a touch of that. Now, the level looks really good for getting broken, but Gold is getting closer and closer to a squeeze. If that's true, then ideally it would be great to see a break lower to test the even lower trend line that is dragging from the end of 2015.
Gold recently was at 1295, which is like a magic rubber wall where Gold hits it, stretches it and then slingshots back to the lows.
So, I will a be a strong SELLer with a careful STOP initially, if it breaks and stays below the first trend line. If it will do that, then a lot a of traders will jump in on the action. This will, probably, lead to a little reversal to the upside to take out all the STOPS of the SELLers. Certainly, you decide what STOP to put for yourself, but just be aware that sometimes, in situations like these, we can see a very long tale at the end of the second candle and small body, because unwanted traders are getting taken out there.
Anyway, long story short, I would like to see a good sell-off to test the $1200. I know it's a bit aggressive, but with this market, anything is possible.
As always, keep an eye on the price action!