[GOLD] Price is forming a bottom, look for long opportunity
From the chart we can see that even though the price is still fluctuating within the small descending tunnel, 1225 and 1230 provide very strong support and resistance. Since 1225 has been tested for four times, plus Trump just exited nuclear treaty with Russia that risk aversion mood is also likely to push up gold price, we are expecting gold price to test 1230 once again today. However, always be cautious about sudden reverse impact from events and news.
Strategies with two possibilities (red and green arrows):
1. Red arrows: traders may wait until the price retreats back to 1225 then take a long position to 1230. If 1230 is confirmed to be broken through, continue long position to 1235. Stop loss at 1217.
2. Green arrows: if anything unexpected happened (news, events, Trump's twits, etc.) that price is confirmed to be lower than 1225, traders may take short position to 1220. If descending momentum is extremely powerful, further short to 1217. Stop loss at 1230.
Strategies with two possibilities (red and green arrows):
1. Red arrows: traders may wait until the price retreats back to 1225 then take a long position to 1230. If 1230 is confirmed to be broken through, continue long position to 1235. Stop loss at 1217.
2. Green arrows: if anything unexpected happened (news, events, Trump's twits, etc.) that price is confirmed to be lower than 1225, traders may take short position to 1220. If descending momentum is extremely powerful, further short to 1217. Stop loss at 1230.