Normally, a like this would not be traded. However, the clear rejection of 1300, and the fast move downwards, proves that there is less commitment from buyers, and a breakdown from the is a legitimate scenario.
I will sell the monthly level at 1281 with a tight stop. If price moves to the top of the , I will short again - with a tight stop. And of course, I will sell the breakdown from the .
This is a more aggressive style of trading. Why? Gold has rejected new highs for 2 consecutive months, and a break of the strong support in the 1250-1270 area could result in a waterfall decline to the 1210 area - my target on this run.