Gold forming a cup and handle reversal, prepare for strong drop!
Sell below 1344. Stop loss at 1353. Take profit at 1325.
Reason for the trading strategy (technically):
Gold has formed a really strong reversal with a cup and handle formation. We look to sell below major resistance at 1344 (Fibonacci retracement, horizontal overlap resistance, cup and handle breakout level) where a strong drop is expected to push price down to at least 1325 support (Fibonacci retracement, horizontal overlap support, Fibonacci extension).
Stochastic (34,5,3) is seeing descending resistance hold it down really well which corresponds to the drop we’re expecting.
Reason for the trading strategy (technically):
Gold has formed a really strong reversal with a cup and handle formation. We look to sell below major resistance at 1344 (Fibonacci retracement, horizontal overlap resistance, cup and handle breakout level) where a strong drop is expected to push price down to at least 1325 support (Fibonacci retracement, horizontal overlap support, Fibonacci extension).
Stochastic (34,5,3) is seeing descending resistance hold it down really well which corresponds to the drop we’re expecting.