We see Gold continuing to move lower this week on a risk-on environment. Investors have taken the BREXIT delays along with low static on the U.S./China front as a positive outlook. Gold closed last week higher just shy of +1% (+0.94%) due to the conclusion on BREXIT uncertainty, however, that all has changed.
Friday we saw a high touch candle, moving out of our upper trendline with weakness. We have adjusted our outlook to be a definite bearish bias. Friday saw a move of just over +$14 before giving back all of its gains to close at +0.07%, just about breakeven.
The 4 Hour chart shows price pressing against an 18-day support line. We believe with this type of pressure we will see a lower gold this week.
THE PLAY: We are moving from hold to Short on Gold if it breaks and closes below $1480.5 down to $1400.00
Friday we saw a high touch candle, moving out of our upper trendline with weakness. We have adjusted our outlook to be a definite bearish bias. Friday saw a move of just over +$14 before giving back all of its gains to close at +0.07%, just about breakeven.
The 4 Hour chart shows price pressing against an 18-day support line. We believe with this type of pressure we will see a lower gold this week.
THE PLAY: We are moving from hold to Short on Gold if it breaks and closes below $1480.5 down to $1400.00