Gold – Sharp break at MA200 and cycle low intersection
MA200 (daily) and cycle low (of 2017 rally) intersection support was broken last week, and the price extended down to 1245 again.
Having declined $50 a week, the price action is too stretched now. A correction seems to follow before the next short opportunity.
Also to be noted that the break might be a “bear trap”, break not confirmed yet.
I booked profits for now, and looking for either of the following points for a possible short entry.
a_ In case of correction, a reaction from 1260-1265 band from above
b_ In case the price continues to decline further, just below Fibo 78.6 level (1239)
Staying below MA200, and extending down below 1239 (Fibo 78.6) shall confirm a long-term bearish trend in my opinion.
Having declined $50 a week, the price action is too stretched now. A correction seems to follow before the next short opportunity.
Also to be noted that the break might be a “bear trap”, break not confirmed yet.
I booked profits for now, and looking for either of the following points for a possible short entry.
a_ In case of correction, a reaction from 1260-1265 band from above
b_ In case the price continues to decline further, just below Fibo 78.6 level (1239)
Staying below MA200, and extending down below 1239 (Fibo 78.6) shall confirm a long-term bearish trend in my opinion.