Gold outlook neutral, watch price action at the resistance
Overview- Gold is consolidating in the resistance area for quite sometime now.
Yesterday, was a bearish day but not bearish enough for the sellers to be too confident ;)
Analysis - If you look at the chart, you can see that yesterday's daily candlestick,
although bearish, has a pretty long wick at the bottom. 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, failure to break resistance
will open up sell opportunities between 1745-1750 with SL above 1755 and TP at 1710.
Disclaimer - This is simply an analysis and not a trade recommendation. The trades will be
executed only if it meets the required criteria.
Yesterday, was a bearish day but not bearish enough for the sellers to be too confident ;)
Analysis - If you look at the chart, you can see that yesterday's daily candlestick,
although bearish, has a pretty long wick at the bottom. 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, failure to break resistance
will open up sell opportunities between 1745-1750 with SL above 1755 and TP at 1710.
Disclaimer - This is simply an analysis and not a trade recommendation. The trades will be
executed only if it meets the required criteria.