Miss you ppl and miss the charts. I missed this update on the breakout below 1268.00 level as i was away for the past week or so. So this is a late update, and that makes this not an optimum trade as the perfect short entry was on the break below 1268. I will try just to define the trading conditions and technical position for gold in this post.
So what was going on ?
In my latest analysis for gold i was looking for a bullish move after the multiple rejection at 1268-1279 support area, however, price failed to rally above 1310, and pushed sharply lower breaking that key support which was a major negative signal as usually when price fails to rally after multiple attempts that implicates a strongly weak market.
- Before the bearish breakout the price entered a phase of consolidation which took the shape of a descending triangle, and the breakout below 1268 completed the pattern. - The full target for the triangle is near 1205. But watch for 1230 which is another potential support. - In the very short term, watch for 1250 level, which is the key resistance for now, if taken may extend to 1260.00 and 1268.00., but i would look to short gold if that pullback materializes.
This is a general view, as usual i will try to post a more precise trade setups as i encounter them,