Open and High of the Day + 5 Daily Moving Average
Here is what I think about Gold. I was becoming skeptical about its move to 1750 and the way it did a pullback. It did consolidated a bit then rallied again for a re-attempt at 1750. However, when it is near 1740, the sellers are so strong to push back the price below the breakout of 1725 level. It did a next re-attempt but it was not able to go back to 1740 level. What is worst is that it pierced or break the Open price of the day which is 1716 level.
By the way, Gold is just holding on to the dynamic support of 5 Day Moving Average. Once it acts as resistance, the downward pressure will continue.
My thoughts about it: Open usually sets the tone for the day. Going from the High of the day and breaking the breakout point and that minor support did not even hold caused panic. Thus, it even went back to the Open price. Thus, for me that is very bearish which means that Sellers are overcoming the Buyers. Aside from that, Gold futures seems to be breaking down Gold is a safe-haven and it is acting as such but Cash is needed to buy stuff in times of crisis like this with all the shutdown. I decided to take a Short instead of waiting for the breakdown. I know Gold will rally a bit before Market Close or maybe at the Open but it can be a false breakout. It is for this reason you need to watch out for the false break and keep your emotions intact.
Make sure your Stop Losses for Short are not in the area where they will do a Stop Hunt for less than 1 minute and reverses it then go to your assumed analysis that Gold will do a pull back. How big is the pull back? Let us wait and see.
By the way, Gold is just holding on to the dynamic support of 5 Day Moving Average. Once it acts as resistance, the downward pressure will continue.
My thoughts about it: Open usually sets the tone for the day. Going from the High of the day and breaking the breakout point and that minor support did not even hold caused panic. Thus, it even went back to the Open price. Thus, for me that is very bearish which means that Sellers are overcoming the Buyers. Aside from that, Gold futures seems to be breaking down Gold is a safe-haven and it is acting as such but Cash is needed to buy stuff in times of crisis like this with all the shutdown. I decided to take a Short instead of waiting for the breakdown. I know Gold will rally a bit before Market Close or maybe at the Open but it can be a false breakout. It is for this reason you need to watch out for the false break and keep your emotions intact.
Make sure your Stop Losses for Short are not in the area where they will do a Stop Hunt for less than 1 minute and reverses it then go to your assumed analysis that Gold will do a pull back. How big is the pull back? Let us wait and see.