We want to see gold drop-down, as we already posted last week.
From the technical perspective, price is now trading at the top of the bearish channel band and might face a strong supply zone, also given by previous daily resistance.
The daily pattern is a head and shoulders now forming the right shoulder. The next move down should cut the 200 MA and confirming our target.
The technical overview is supported by COT Data, which shows signs of the trend reversal. Last week's report showed a massive change in net positions accumulated by banks. 20k longs closed and 10k shorts opened.
Short positions are now in the building process.
XAU/USD needs to drop to the bottom of the channel, completing the H&S pattern. The area is also aligning with the weekly uptrend channel and a strong level of resistance now acting as support.
We will short Gold with the first take profit at 1.512. Our longer-term target of Gold remains the same.
Traders, if you take the trade do not forget to follow the idea in order to get the updates. We are open to your feedback about our delivery of the information. Let me know what you think in the comments.
From the technical perspective, price is now trading at the top of the bearish channel band and might face a strong supply zone, also given by previous daily resistance.
The daily pattern is a head and shoulders now forming the right shoulder. The next move down should cut the 200 MA and confirming our target.
The technical overview is supported by COT Data, which shows signs of the trend reversal. Last week's report showed a massive change in net positions accumulated by banks. 20k longs closed and 10k shorts opened.
Short positions are now in the building process.
XAU/USD needs to drop to the bottom of the channel, completing the H&S pattern. The area is also aligning with the weekly uptrend channel and a strong level of resistance now acting as support.
We will short Gold with the first take profit at 1.512. Our longer-term target of Gold remains the same.
Traders, if you take the trade do not forget to follow the idea in order to get the updates. We are open to your feedback about our delivery of the information. Let me know what you think in the comments.