Gold Range: The Longer It Holds, the Harder It BreaksAs you already know, I’m not the type of guy who writes the classic “if it’s not up, it must be down.” But with Gold stuck in this painfully 4180–4240 range, it’s almost impossible to craft a proper swing trading outlook.
The market has been trapped here since December 1st, and the longer the price stays here, the more violent the eventual breakout will be, at least this is sure.
Yesterday was a perfect illustration of indecision: Gold spent the entire session glued to 4200, and even the FED couldn’t shake it loose. As I’m writing this, price has returned right into the middle of the range — the exact place where no trader with longer-term intentions (2-3 days) wants to take a position.
That said, even if I don’t have a preferred scenario , I do have BIAS , and that bias is bearish.
If Gold slips back toward 4190, I’ll look to sell in anticipation of a breakdown.
After two weeks of range trading, the next impulsive move should have distance — and I’m targeting at least 1,000 pips to the downside once the range finally gives way.
Ohhh, yeah, if it breaks 4250 then it's up:)
