GOLD: Bulls To Pullback To $1309 Before Crashing To $1300
Good afternoon traders! I hope you all had a great weekend and are now ready to get off to another great week in the markets! Today we're going to look at Gold and see where price is going next!
To begin, it's crucial that we take into account the swift reversal we had from $1325 at the beginning of the month. The selling pressure came in with strength and the bulls were not able to sustain price at these highs. This is what caused us to begin the bearish trend, taking out multiple major supportive levels on the way down.
After finding support at $1309 and then $1303, on both occasions, the retracement that followed was terminated and capped at $1315. This level has been acting as a major level of resistance for the metal. We can see price has fallen from here twice now, with this current push being the leg that I believe will allow us to reach $1300, our overall bearish target. It is a possibility however that we will pull back to re-test $1309 before falling as I have captioned on the chart, so we can lie in wait here for a potential short setup if the opportunity presents itself.
Gold moves very fast so be sure to be on the ball and ready to strike when it's time!