Gold pulls off 100-EMA after drop. Last chance for bears...$1775
Gold futures manage to drop through a key support structure as we anticipated and into the $1,855 level which is also the 100-day EMA. That is a key support level and prior broken top.
The downside opened up on mediocre volume but so did the upside. We are now seeing a pullback as we enter the the $1,900 area.
The prior broken low was the $1,920 area and now its pulling back to that level for the continued potential shorts. Based on structural movement we should see the sell pressure come in at that level. Based on fundamentals, the shorts could come out with the equity sell off should we see one. Considering gold and US equities have been moving in tandem lately.
The last expected move for the shorts to hold out, based on prior lower highs and resistance is at $1,975. That is the impulse area that we want to see hold out for shorts. However at that point should the buy pressure has already come out and we're expecting to see the range buyers come in again to hold out the level.
Meaning we're reverting back to the $1,920 for the resistance for the sellers to hold out so we can break the 100-day moving average and get the push lower as we have expected before we make a move back up.
This post is for educational purposes only, it doesn't solicit trading or investment advice.
The downside opened up on mediocre volume but so did the upside. We are now seeing a pullback as we enter the the $1,900 area.
The prior broken low was the $1,920 area and now its pulling back to that level for the continued potential shorts. Based on structural movement we should see the sell pressure come in at that level. Based on fundamentals, the shorts could come out with the equity sell off should we see one. Considering gold and US equities have been moving in tandem lately.
The last expected move for the shorts to hold out, based on prior lower highs and resistance is at $1,975. That is the impulse area that we want to see hold out for shorts. However at that point should the buy pressure has already come out and we're expecting to see the range buyers come in again to hold out the level.
Meaning we're reverting back to the $1,920 for the resistance for the sellers to hold out so we can break the 100-day moving average and get the push lower as we have expected before we make a move back up.
This post is for educational purposes only, it doesn't solicit trading or investment advice.
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