Since the start of september we've seen how Gold has undergone a correction after reaching maximums that it didn't touch since 2013. This strong selling that started around 1557 has been mainly due to the fact that there has been an increase in optimism in US-China trade talks, which has been heavily influencing the price of gold during the last months.
1. First and foremost, price had a bad time trying to break the 4h support (now 4h resistance), until a strong bearish engulfing candle managed it.
2. After breaking this zone of sensitivity, price came down to touch the weekly support, bouncing during the last days to retest our 4h resistance.
3. Today we saw how euro negative news pushed price to the upside, breaking the 4h resistance zone and managing to touch our monthly resistance. However, this only lasted a few mintues as selling pressure affected price inmediately, leaving a strong bearish wick, and with the bears managing to break back again the 4h support. This symbolizes that bears are right now in control of gold and it is worth trying theses shorts!!
Tp: weekly support, around 1487.
Sl: a bit above our 4h resistance zone, around 1411
1. First and foremost, price had a bad time trying to break the 4h support (now 4h resistance), until a strong bearish engulfing candle managed it.
2. After breaking this zone of sensitivity, price came down to touch the weekly support, bouncing during the last days to retest our 4h resistance.
3. Today we saw how euro negative news pushed price to the upside, breaking the 4h resistance zone and managing to touch our monthly resistance. However, this only lasted a few mintues as selling pressure affected price inmediately, leaving a strong bearish wick, and with the bears managing to break back again the 4h support. This symbolizes that bears are right now in control of gold and it is worth trying theses shorts!!
Tp: weekly support, around 1487.
Sl: a bit above our 4h resistance zone, around 1411
Trade closed: target reached:
GUYS 1488 HAS JUST BEEN HIT!! Fantastic trade wich only took 1 day to reach our target! Retail sales stronger data helped us reach it, a trade where both technicals and fundamentals have accompanied us. Could have not been better, hope you took the trade!