Starting from the middle of Feb, S&P500 has dropped nearly 20%. Surprisingly, Gold is still ranging between 1550 - 1700 level. Gold has tested 1700 for few times and it still couldn't closed above it. IT'S SIGN OF WEAKNESS.
In addition to breakout of virus recently + Fed cutting rates (Market is expecting to cut near 0%), Gold HAS NOT moved up much. IT'S SIGN OF WEAKNESS AGAIN.
From the technical point of view, by using simple SUPPORT & RESISTANCE method. You can easily see that there's OBVIOUSLY resistance level of 1700 blocking its way. Considering the good risk reward 1:4 (risking of 40-50 points to exchange for nearly 200 points), i will start shorting until it breaks level 1600.
Happy Trading Guys! Feel free to comment below :)
In addition to breakout of virus recently + Fed cutting rates (Market is expecting to cut near 0%), Gold HAS NOT moved up much. IT'S SIGN OF WEAKNESS AGAIN.
From the technical point of view, by using simple SUPPORT & RESISTANCE method. You can easily see that there's OBVIOUSLY resistance level of 1700 blocking its way. Considering the good risk reward 1:4 (risking of 40-50 points to exchange for nearly 200 points), i will start shorting until it breaks level 1600.
Happy Trading Guys! Feel free to comment below :)
Trade closed: target reached