Last week I wrote about gold at the $1400 level and we’re still lacking any fight to break above. This should be a worry to the bulls and those long from above and looking for higher prices.
Just like towards the end of April we find ourselves going sideways while banging our head on the big figure.
The patience back then wore off and we could see the same happen here. A failure to bust $1400 in the next few days will likely send the pair lower as longs start to realise that we’re not going higher.
A fall will target last weeks low at $1337 and the big fall low at $1320. Those points may not hold enough buyers to keep $1300 from breaking.
I’ve been out the gold trade since we were way up at $16-1700 but fancy getting back in. I missed the chance to sell up near $1400 yesterday and believe that shorting is still the best risk reward trade.
I’ll be looking to short up at $1400 with a stop at $1410, just above the 50 fib level at $1407
