Gold is retesting the trend line that was broken down when gold dropped to 1330 support level . Currently this support at 1330 holds and gold is re-bouncing to 1340-ish. If gold manages to close above the trend line , it will be a bullish signal. If not, gold will likely drop further to the next support level at 1310. You can see the resistance area (red) is around 1342-1345. While the support zone (yellow) is around 1307-1310. I believe the downtrend will continue if gold can't hold above 1350. Here is my trade plan:
- Sell limit at 1343.
- Stop loss above 1350 (on daily close)
- Take profit at 1310.
Stay Tuned !
Order was hit at 1343. If today price closes above 1350, I will exit with a small loss.
Gold did overshoot a little bit to the upside, 1357 to be exact but soon found sellers at that zone and has retraced to 1345. My trade is still valid. This is why you want to see a daily close today and decide if you wanna get out instead of having a definite stop loss at spot price above 1350, you would likely be stopped out already.
If today price closes under 1345, it would signal that price tries hard to climb back to the trend line but failed.