GOLD: Tumbled As Expected, Great Buy Opportunity From $1245.00
After a couple of weeks of consolidation trapped inside a wedge, Gold has finally taken a tumble as expected. There is still plenty of downside potential for the precious metal with an initial retracement to the 1266.00 area as previously explained. Should price continue to fall through this area of support we could even see a retracement as low as 1245.00. Not only is 1245.00 a key level of support it lands pretty damn close to what would be the 4th test of a Bullish trend line indicating price could be very reactive to this zone. I believe 1245.00 is likely to be achieved in the coming weeks and that is probably as low as we will see Gold fall in the short term, I think following this move we can expect to see the next leg of the overall Bullish trend.
I have shown potential setups on the chart for the coming weeks, once we have retested 1245.00 as support I will be looking for opportunities to go long on Gold and riding that wave all the way up past target 1 - 1307.00 to target 2 - 1320.00.
The Dollar Index has also recently broken above the Bearish trend line that had been active since mid-December indicating Dollar strength. Should this strength continue in the short term that would likely be the catalyst for Gold's decline to 1245.00.
Written by Sam Moore
Instagram - @Moore_Fx...