Gold ? Ready to get Crushed? ?
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Dear Traders,
yesterday’s volatility produced interesting price-action for Gold. The time could be ready for a bearish break. Today’s analysis will provide a brief update on Gold.
Correction Could be Complete
Gold produced a bullish bounce as anticipated in my previous analysis, which got reversed sharply straight after hitting 1309. Overall one could call the corrective structure since the May 21 low complete now. The bearish bounce occurred right at the 144 EMA of the Daily chart, while also keeping a bearish alignment of short-term vs long-term moving averages on both, 4hour and daily charts.
Price needs to show us impulsive follow-through to the downside today if a bearish break of the black support trend line is to be successful.
A break could realistically target levels around 1230 – 1200 (possibly lower), which provides a fairly strong previous support zone and also contains the 61.8% Fibonacci retracement of the swing that started at the Dec 2016 low. At the same time, invalidation levels are close by (i.e. at yesterday’s high). A roughly 5:1 reward to risk ratio makes this a worthwhile trade attempt.
All the best along your trading journey.
Hubert
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