Gold had a big drop last week, starting Monday and continuing until market close of Friday due to minimisation of long positions from big players in fear of trade talks and more bearish outlook.
Signals more of a bearish outlook to start the week, selling pressure could continue to see us drop to 1450$ per ounce or further, as well we could see a pullback first...
We saw a big sell-off on Gold yesterday initially down to 1500$ support then a break and down to the lowest support within the range we have stayed in for the last few weeks.
I would suspect a move up to baseline 1500$ over the rest of the week.
Gold is looking like it will fall back to the 1500$ baseline at least, from here we can either break support and head down to the sloping daily trendline or bounce back up.
Either way has good trading opportunities, all we need is some energy in the markets.
Gold ended the week in a small zone, looking to break out to the upside or downside from here to give more clarity on the rest of the week.
The upside trade has more room ro make money on a break, retest so I will be wary of a break to the downside.
I will be looking for buys or sells from arrows so break and re-test of the blue fib lines either to the top or back down to the bottom of trendline.
Taking it easy as it is NFP on Wednesday...
Gold looks to be consolidating between 38% and 50% fib levels for two weeks now - waiting for a break above and a push past 1500 per ounce or a drop down to the bottom of the triangle formation...
I have been scalping for the last week so have not looked at fundamentals too much but I would expect a big move to happen soon around big news releases.
Gold started the week quiet - I am currently looking for a push up to the red arrows for a sell opportunity, looking at the daily candles we have wicks that need to be filled before a bigger down move.
Short term we can scalp buys up to 1500 per ounce. If we push pash 1500 then bulls can push us up further but if we fail to break the 1500$ then more downside will...
A drop in Gold post CPI numbers on Thursday before a small push up on Iranian oil tanker early Friday morning to trendline again before slamming through our strong support now turned resistance.
I would expect to see a retest and then another push down to complete the movement, either today or next week.
Gold made some whipsaw moves today due to weak PMI data coming in at 47.8 vs the expected 50.4 so a move to save assets.
Tomorrow we have US ADP Employment Change at 1:15 pm GMT.
Let's find a direction tomorrow as we are at a major S/R level - $1485
Gold ended the week by completing the head and shoulders pattern, next week we look for a break or a continuation up. Simple as that.
Light on the news next week but things kick off from Tuesday.
Gold consolidation during the Tokyo session has set us up nicely for a short this morning.
I will be going short and out before the US open, re-await direction and see if any opportunities arise from the fundamentals.