It's quite clear that gold has been in a massive downtrend recently.
However last week we saw some bullish momentum to the upside towards 1675. I strongly believe this is just a pullback. Price was simply exhausted and went back to retest a previous level of structure before it continues to sell. This level also aligns with a Fibonacci level.
The trade Idea here is quite simple price went back to retest the major resistance level however this level is also the top of a range. So if price can break below the bottom of the range, it invalidates the range and also confirms a continued downtrend as price would have broken the previous lower high that was created.
So a simple break and retest of this level would be a good entry point for me to take this trade.
Remember that this is not financial advice and just a simple analysis. Price can do whatever it wants.
Manage your risk!
However last week we saw some bullish momentum to the upside towards 1675. I strongly believe this is just a pullback. Price was simply exhausted and went back to retest a previous level of structure before it continues to sell. This level also aligns with a Fibonacci level.
The trade Idea here is quite simple price went back to retest the major resistance level however this level is also the top of a range. So if price can break below the bottom of the range, it invalidates the range and also confirms a continued downtrend as price would have broken the previous lower high that was created.
So a simple break and retest of this level would be a good entry point for me to take this trade.
Remember that this is not financial advice and just a simple analysis. Price can do whatever it wants.
Manage your risk!