Gold outlook neutral, watch price action at the resistance
Overview- Gold is consolidating in the resistance area for quite sometime now.
Right now, the odds for sellers and buyers are even.
Analysis - If you look at the chart, you can see that price is moving in a
narrow range in the resistance level. So, the sellers have not been able to
dominate the price action here. Right now, the chances for both buyers and sellers is pretty even.
A big red candlestick in the resistance will give confidence to the sellers to push the price even
lower. On the other hand, a strong bullish break through the resistance will give buyers the
impetus to push price towards 1800.
Probable trade set-up - Based on the above analysis, if Gold breaks the resistance,
then buy with 1800 as TP. A failure to break the resistance will increase the odds for a drop to
1700 but that looks a little less likely now.
Disclaimer - This is simply an analysis and not a trade recommendation. The trades will be
executed only if it meets the required criteria.
Right now, the odds for sellers and buyers are even.
Analysis - If you look at the chart, you can see that price is moving in a
narrow range in the resistance level. So, the sellers have not been able to
dominate the price action here. Right now, the chances for both buyers and sellers is pretty even.
A big red candlestick in the resistance will give confidence to the sellers to push the price even
lower. On the other hand, a strong bullish break through the resistance will give buyers the
impetus to push price towards 1800.
Probable trade set-up - Based on the above analysis, if Gold breaks the resistance,
then buy with 1800 as TP. A failure to break the resistance will increase the odds for a drop to
1700 but that looks a little less likely now.
Disclaimer - This is simply an analysis and not a trade recommendation. The trades will be
executed only if it meets the required criteria.