The basic of is that history tends to repeat itself. And as a technician, your job is try to find patterns that tend to repeat or actually happen before. What do you see from the chart:
- @1300. Gold once broke down the neckline, it was a short term top until gold reaches 1200.
- Possible @1287. Neckline @1277.
- Overbought at 1300-1303 and Overbought at 1287-1290.
- Divergent at 1300-1303. and Divergent at 1287-1290.
If history repeats itself, this will be hell of a break out to the downside. So let's hope it does.
- If you have short position @1285-1290, please keep your short position with stop loss above 1303.
- If you do not have a short position, you may want to take a trade once price breaks out of the neckline to the downside. Stop loss above 1290.
FED may not raise rates, it still does not matter. What matters is how they will approach the rate hike in the next meeting in July. If they are hawkish about hiking rate in July, USD will be stronger and Gold will break down. Thanks for reading and please stay tuned.