Should you buy Gold? Short answer : Not yet.
We are looking at the Gold chart here and although the pair was crazy bullish just couple of weeks ago, at this moment we're not liking the price action and to be honest if it loses 1720ish zone as support it could pretty much free fall towards 1700 area (where support trendline is).
This is why we are cautious about gold ATM and we would maybe even favor shorts for short term outlook (if 1720 support is broken).
We can talk about longing once we see support trendline working or if we see a bounce from this area breaking resistance trendline we have.
Anyway, at this point price is neutral and should give us more clues so we can develop a bias and go along with it. For now, we are in wait & see approach. Let us know in the comments how do you see Gold shaping up.
This is why we are cautious about gold ATM and we would maybe even favor shorts for short term outlook (if 1720 support is broken).
We can talk about longing once we see support trendline working or if we see a bounce from this area breaking resistance trendline we have.
Anyway, at this point price is neutral and should give us more clues so we can develop a bias and go along with it. For now, we are in wait & see approach. Let us know in the comments how do you see Gold shaping up.
After price development, we will be looking to short XAU anywhere between 1718 and 1722 (depending on price action).
Our SL will be at 1728
TP1 at 1686
TP2 at 1645