Unless you are in a short already (in which case you should think about taking profit), Gold is now in a “wait and see” phase for traders. My chart had all kinds of trendlines and channels etc., so I first of all cleaned up all that and started thinking afresh.
On the daily chart, as you can see the $1765 region is very significant. It has acted both as resistance and support in the recent past. Will it hold the decline this time around? I think so but there is no way to tell until price gets there and we observe the price action. Next area of interest would be the $1700 region down below.
Even though price is below the 200SMA, I am still neutral-bullish on this pair and expect a reversal around the $1765 level. But it will be difficult to take a long trade even if that level is defended by the bulls. Price would have to close above $1817 on a daily closing basis for me to feel confident that we are bullish again.
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As always, please use sound money and risk management in all your trades.
On the daily chart, as you can see the $1765 region is very significant. It has acted both as resistance and support in the recent past. Will it hold the decline this time around? I think so but there is no way to tell until price gets there and we observe the price action. Next area of interest would be the $1700 region down below.
Even though price is below the 200SMA, I am still neutral-bullish on this pair and expect a reversal around the $1765 level. But it will be difficult to take a long trade even if that level is defended by the bulls. Price would have to close above $1817 on a daily closing basis for me to feel confident that we are bullish again.
If you like my analysis please give it a “thumbs up” and follow me to get immediate notifications.
As always, please use sound money and risk management in all your trades.