Technical:
1. Gold has been in steady uptrend channels for 9 trading days, but the recent price action overlapping the upside channel suggests that the correction is due. In addition, the 2 times rejection shown on chart also add to our short-term bearish bias.
2. The room of corrective moves in gold is seen to touch 1660 - 1665 area.
Trade ideas:
We generate the low-risk trade idea of shorting gold at current market price at 1178.
S/L: 1186
T/P: 1163
Risk to reward ratio = > 1:2
1. Gold has been in steady uptrend channels for 9 trading days, but the recent price action overlapping the upside channel suggests that the correction is due. In addition, the 2 times rejection shown on chart also add to our short-term bearish bias.
2. The room of corrective moves in gold is seen to touch 1660 - 1665 area.
Trade ideas:
We generate the low-risk trade idea of shorting gold at current market price at 1178.
S/L: 1186
T/P: 1163
Risk to reward ratio = > 1:2
