GOLD closed up modestly (+0.31%) as some investors felt the need to hedge a bit of risk. Now, we have a clear-cut bearish wave on the daily GOLD chart. And, the 38% Fibonacci retracement level is on the horizon:
38% Fibonacci retracement, 1808.43
As long as the daily swing low (1780.36) remains intact, the 38% retracement is a potential supply zone (resistance). Here’s a possible short trade:
Sell GOLD at 1807.90
Stop loss at 1810.60
1:2 risk vs reward ratio, trend following trade
Profit target at 1802.5
38% Fibonacci retracement, 1808.43
As long as the daily swing low (1780.36) remains intact, the 38% retracement is a potential supply zone (resistance). Here’s a possible short trade:
Sell GOLD at 1807.90
Stop loss at 1810.60
1:2 risk vs reward ratio, trend following trade
Profit target at 1802.5