Gold has started its decline exactly from the area I mentioned in the previous analysis and the traders who placed their short positions at that time would be in profits now. Gold is already $22 down from the area I advised traders to take short positions.There is further room to the downside as the metal has decisively broken the initial support at 1276 and now is looking to extend its corrective move towards 1250-1260 area that I mentioned in my previous analysis. Last week Stochastic warned the bulls to take their profits as the rally was running out of steam and momentum indicators were also showing signs of exhaustion as I clearly mentioned in the chart and that's exactly happened and gold started to move downwards. Next strong support is the cloud support that lies at 1245-1255 and that is the area where I will open my long position. Gold is in a short-term bearish trend and making lower lows and lower highs. There is further room towards the downside for the yellow metal so traders can find any rally as a chance to sell. Conservative traders can watch for a proper pullback towards the cloud support to open their Long positions. I am short from 1289 with the target 1260.
Today's Recommendation: Sell any rally with the stop loss above today's high and target 1260.
Good Luck..
Today's Recommendation: Sell any rally with the stop loss above today's high and target 1260.
Good Luck..