Similar to the EUR, shorts on gold are also a possibility today.
Similar to the EUR/USD, a market that tends to correlate well with the price of gold, the yellow metal shows a possible H4 AB=CD bearish correction at hand. The bounce from April’s opening level at 1248.0 formed a potential C-leg, and could lead to price rallying today and touching gloves with the H4 AB=CD 127.2% ext. point at 1258.3. Not only do we have this, but we also have a nearby merging H4 resistance at 1259.1, two H4 trendline resistances taken from lows of 1245.9/1252.9 and a H4 50.0% retracement value at 1261.0.
Also noteworthy is that this H4 resistance level at 1259.1 is planted just above a daily resistance area pegged at 1247.7-1258.8. And alongside this, we also see that weekly price shows room to extend down to demand at 1194.8-1229.1.
Our suggestions: The confluence surrounding the H4 resistance mentioned above at 1259.1 is, we believe, enough to justify a short position. With that being said, however, we would only consider this a valid sell zone if, and only if, a reasonably sized H4 bearish candle took shape from here. This will help avoid an unnecessary loss and also help sidestep any fakeout that may be seen given that the sell zone (1261.0/1258.3) is relatively small.
Levels to watch/live orders:
• Buys: Flat (stop loss: N/A).
• Sells: 1259.1 region (waiting for a reasonably sized H4 bear candle – preferably a full-bodied candle – to form before pulling the trigger is advised, stop loss: ideally beyond the candle’s wick).
Also noteworthy is that this H4 resistance level at 1259.1 is planted just above a daily resistance area pegged at 1247.7-1258.8. And alongside this, we also see that weekly price shows room to extend down to demand at 1194.8-1229.1.
Our suggestions: The confluence surrounding the H4 resistance mentioned above at 1259.1 is, we believe, enough to justify a short position. With that being said, however, we would only consider this a valid sell zone if, and only if, a reasonably sized H4 bearish candle took shape from here. This will help avoid an unnecessary loss and also help sidestep any fakeout that may be seen given that the sell zone (1261.0/1258.3) is relatively small.
Levels to watch/live orders:
• Buys: Flat (stop loss: N/A).
• Sells: 1259.1 region (waiting for a reasonably sized H4 bear candle – preferably a full-bodied candle – to form before pulling the trigger is advised, stop loss: ideally beyond the candle’s wick).
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