As we can see now, gold has officially broken down strongly of its trend movement. I will classify BULLISH strength when price level moves above trend resistance level and BEARISH strength when we see price level below the trend support. As of now, what we are seeing a BEARISH strength after that breakout from the trend support level. This brings me to the main point of what many of you guys may be asking: Could this be a fake out? My answer for you is to weigh the risk you are involving when predicting a fake out. You are not exposing yourself to a good risk to reward trade. Think about it, where will you be placing you SL, if you are predicting a fake out. My guess will easily be near current market price. If so, you are simply trading against the rule of a BEARISH strength i mentioned earlier. However, current price level is moving back to retest the broken trend support and a resistance at around 1895 where theoretically a strong BEARISH pressure is present. Will you risk to reward be better now? Are you placing yourself in a better scenario/situation? Prediction vs Confirmation after rejection. Your call.
Kindly hit the LIKE Button if you agree with my analysis and feel free to COMMENT your idea below. As for those who are keen to get daily updates and analysis from me feel free to FOLLOW me. Cheers and Happy Trading!!
Kindly hit the LIKE Button if you agree with my analysis and feel free to COMMENT your idea below. As for those who are keen to get daily updates and analysis from me feel free to FOLLOW me. Cheers and Happy Trading!!