There is a current re-trace for the day. Will see how the week will close - Resistance at 1680 levels. I will wait for a re-attempt to confirm a Triple Top as part of risk management as Gold has a very strong momentum on the upside unless of course you are using the 15 Minute Chart where you get in the trade and get out of the trade as fast as a bullet train.
The swing highs and lows are based on market reaction to the level where there is a big move - either going up or going down.
For me to short this market, I will wait for the 5 day moving average on the Daily Chart if it will act as resistance. Why 5 Day moving average? It is a measure of momentum. If prices are above it, then it can still go higher before turning around. In the same manner, when Gold went down, once the 5 Day moving average is very near the price and swinging to and from it, I knew a technical rebound will happen - going Up.
To add, 1640 level is also a New Swing Low. :)
The swing highs and lows are based on market reaction to the level where there is a big move - either going up or going down.
For me to short this market, I will wait for the 5 day moving average on the Daily Chart if it will act as resistance. Why 5 Day moving average? It is a measure of momentum. If prices are above it, then it can still go higher before turning around. In the same manner, when Gold went down, once the 5 Day moving average is very near the price and swinging to and from it, I knew a technical rebound will happen - going Up.
To add, 1640 level is also a New Swing Low. :)