The left-hand chart suggests that, having failed to establish support at its previous low of 2022, the near-month gold futures contract has further to decline. On this basis we would be more ready to add to an existing short position than to start a new one.
The right-hand chart highlights the recent moving-average crossover as a sell signal. We might hold out for a better sell point.
Confirmation can be found in the neckline of the slanted head-and-shoulders pattern having been broken. The slant's upward tilt does not suggest as large a decline as if it were level or tilting downward.
The right-hand chart highlights the recent moving-average crossover as a sell signal. We might hold out for a better sell point.
Confirmation can be found in the neckline of the slanted head-and-shoulders pattern having been broken. The slant's upward tilt does not suggest as large a decline as if it were level or tilting downward.
Comment:
What we do next depends on whether Thursday's retrace pushes further up into Friday. A close at 2030 or higher would make us think about taking our short profits and maybe even taking an early long entry, although an equal case might be made for using a good sell point after the MA crossover to go short.