After making a long bearish daily candle.......gold is now sitting on its daily support of 1680...............on short time frame it is consistently rejecting this support..........thus it should take a bullish retracement to 1710.............where it may reject the resistance at 1710 to go bearish..........if support at 1680 breaks below then we have a strong bearish
@ajaysarita02, the trick is not to open trade just because price has reached the level.....you must start reading price action at these levels and then enter based on what candles are showing you.....the price can break the support......I would suggest to go and look at price action of AUDUSD.....it is positively correlated with gold......AUDUSD at 4 hrs is getting ready to go bearish as in 4hr chart there is 'Inside bar'......which is also a pin bar......so you never know Gold might even break the support at 1680......
JustFaithfx
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Do you think it will open with a gap up or down?
draliraza79
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@JustFaithfx, it is difficult to tell whether markets open with gap or not. I dont trade gaps any more as gaps may not always close. Look at dax last week which opened with gap and hap never closed. So I dont recommend trading gaps.