Gold had a bullish weekly close which confirms my initial Long bias very well. Since my last Gold analysis, price entered a consolidation between 1306-1314 on the fib 38% retracement level. Price managed to break out of the consolidation range and took out the weekly resistance at 1317 and closed above.
I believe we can expect the price to come down to meet the resistance zone and continue to take out the 1325 level. The reason why the price should come down to meet the broken resistance level is the fact that price could not close above the daily resistance area of 1321. Price closed below previous months high which could as well initiate a short, hence the stop loss being as tight as it is.
Long Entry: 1314-1316
Take profit: 1339-1341
Stop Loss: 1311.97
I believe we can expect the price to come down to meet the resistance zone and continue to take out the 1325 level. The reason why the price should come down to meet the broken resistance level is the fact that price could not close above the daily resistance area of 1321. Price closed below previous months high which could as well initiate a short, hence the stop loss being as tight as it is.
Long Entry: 1314-1316
Take profit: 1339-1341
Stop Loss: 1311.97
Trade closed: target reached:
Gold hit the target of 1340 quicker than anticipated, now reversing towards the initial entry price level of 1314-1316. Im looking to Long Gold from there towards 1350 level.
Should the price show signs of reversal, we might see a stronger correction to 1300 level.
Should the price show signs of reversal, we might see a stronger correction to 1300 level.