Last bull standing guard @1180 choose to join the bears! 1180 has swapped the role as resistance guard. Using Fibo, there is a possibility that gold future drops to around 1141 before a rebounce to re-test 1180
P.S. Projection shows "theoretically" that price could get as low as around 940 in time to come or could it just be a false breakdown to clear the bulls?
Comments
PeterBourne
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If there is no convincing price reversal on Monday back above 1180 then I think the price breakdown will be confirmed
jangseohee
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You have a point too!
However, because of the fact that more & more traders are using TA to trade, so i wont rule out the slim possibility of a false break down to take a few more bars before breaking back the 1180 resistance.
PeterBourne
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Its the floor traders that know where all the long(or short) stops are placed by looking at the charts. They know most if not all the off floor traders are using charting so they try to run those stops forcing out the longs (or shorts) . Whenever you see a price reversal around a support or resistance level, this is what has happened.
jangseohee
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Your have a good psychological understanding of the S/R line. The 1 tick above or below S/R line textbook trading method is being exploited by the "floor traders/Commitment of Traders/large speculators" to scare the weak heart :-)
Olu
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Using regular TA the target for that breakdown if it plays out is 830 area. That is very long term though