Simple textbook trading. Better part of March and April gold traded above 1285 support which broke in the second half of April. Having tested the previous support as resistance Gold came down to 1270 support once more to create a left shoulder, followed by a head formation which created a new lower high on weekly and daily timeframes. Current Weekly close just below 1285 resistance has now confirmed a new lower high level, so, a short trade from current resistance seems a low risk trade considering the downside potential.
Targets being placed around December resistance of 1250 level. This correlates almost precisely with Fibonacci extension, giving further confidence in taking the medium term short trade.
Risk reward 1:5 with take profit being 340 pips away from current resistance level.
Targets being placed around December resistance of 1250 level. This correlates almost precisely with Fibonacci extension, giving further confidence in taking the medium term short trade.
Risk reward 1:5 with take profit being 340 pips away from current resistance level.