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Traders,
There are many traps for gold buyers. I know how this sounds like, becoz I am one of those buyer too and be killed for several times.
Each resistance and support is possible position for price next move. So in the middle of May, when gold found itself finished with several doji after a strong bear candlestick, we assumed that was a morning star on daily chart. Were we wrong? Now it proves we were partially wrong. Becoz price did go up to test a lower resistance, 1310, compared to what we expected. Price back to descending trend after 1310. On such case , a wide corrective wave (blue zone) is confirmed as wave 2. Now gold is still on its wave 3 down. Final support zone is the bottom blue one.
What happen to that if DXY hit 100 soon and make a straight up without stop? I guess gold is close to its grave too( 1220-1200).
Thanks for your effort, those trap requires risk management to survive. But do you think the 1236 level is still a good buy opportunity if the DXY fail to sustain above 95 ?