Gold was recently a terrible market to trade in while it consolidated above the stubborn support of $1277.65. Price formed a wedging pattern which basically created a ‘no mans land’ for trading. Last week Gold broke out of the wedge pattern and smashed through the containment support level which was holding price aggressively for weeks.
Now the Gold market has dived lower and created a new swing low, out chart bias here is definitely bearish. We’re only looking for short opportunities now to profit with further weakness. The optimum locations for a bearish sell signal to form would be at the the old breakout level. Old support needs to be confirmed as old resistance with a reversal signal like the pin bar.
Just waiting for a nice strong, dominant sell signal to develop so we can confidently pull the trigger.
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