[GOLD] Fluctuation continues, "Buy low sell high" is suitable
Overall, gold price is still fluctuating between 1220 and 1230. We cannot really determine the absolute buy or sell until the price shows obvious break through on either support or resistance. Thus traders may remain their "buy low sell high" strategy.
During the day, since DXY is expected to retreat a bit that gold price will bounce back, 1225-1226 is likely to provide a resistance since this range is also within Fibonacci 50-61.8. I expect the strong support level 1220 to be tested once again today.
Strategies:
1. Wait until the price bounces back to 1226 then take a short position to 1220.
2. Wait until the price falls back to 1220 to take long position, take profit at around 1229-1230.
3. Safety precaution (green arrow): if price falls even blow 1220, may short to 1217.
During the day, since DXY is expected to retreat a bit that gold price will bounce back, 1225-1226 is likely to provide a resistance since this range is also within Fibonacci 50-61.8. I expect the strong support level 1220 to be tested once again today.
Strategies:
1. Wait until the price bounces back to 1226 then take a short position to 1220.
2. Wait until the price falls back to 1220 to take long position, take profit at around 1229-1230.
3. Safety precaution (green arrow): if price falls even blow 1220, may short to 1217.
Comment:
Just spotted Top Deviation Structure in H4 chart. Be prepared for large sell momentum anytime!