CitRoN_RouGe
Short

Gold – Sharp break at MA200 and cycle low intersection

FX:XAUUSD   Gold Spot / U.S. Dollar
MA200 (daily) and cycle low (of 2017 rally) intersection support was broken last week, and the price extended down to 1245 again.

Having declined $50 a week, the price action is too stretched now. A correction seems to follow before the next short opportunity.
Also to be noted that the break might be a “bear trap”, break not confirmed yet.

I booked profits for now, and looking for either of the following points for a possible short entry.
a_ In case of correction, a reaction from 1260-1265 band from above
b_ In case the price continues to decline further, just below Fibo 78.6 level (1239)

Staying below MA200, and extending down below 1239 (Fibo 78.6) shall confirm a long-term bearish trend in my opinion.

Comments

Too good chart
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Get me below $1200 baby! I need to stock up! Love the analysis!
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Very interesting, will monitor how this idea turns out...
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Thanks CitRoN_RouGe for the analysis!
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Merci
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Why do you assume that correction should go to 1265, but not to 1255-1257?
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Its the heavy of BitCoin ? :D
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