GOLD: The Perfect Technical Play!
It seems the whole trading world has been short Gold since the start of March, and there was a good reason to be as well. $1350 is a major resistance level in the shining yellow commodity, we have not been above this price since early 2014 it has acted as a fantastic ceiling on multiple different occasions. Since the high of $1346 reached in late February we have been trending almost perfectly to the downside, our downward sloping trend-line further supports this negative price action.
Drilling into the daily timeframe is where we really see the bearish price action in full effect. Great downside momentum followed by slow and steady pullbacks which is what we want to see when in a trending market. Adding further confluences into our corner, the pullbacks seen have coincided within our Fibonacci zones and given us bearish candlestick formations thus stacking multiple confluences on the trade.
Currently at the time of writing the price is at $1276, a pullback towards $1290/$1295 would not be out of the question, as we look at previous price action those suggested levels once again coincide with our fib level and some strong resistance just below the big figure. If we form bearish price action/candlestick formations around this level it would once again stack further confluences into our favour.
A clean break and closure on the daily time frame above $1295 would negate this trade....