Gold likely to target 2,335 and 2,328/25 today [Video]
|Gold analysis and trade ideas
Gold volatility has dropped significantly as we are in a sideways consolidation after last week's bearish engulfing candle on the weekly chart. I warned that this would happen, but it takes a couple of weeks before we can try to identify the consolidation pattern.
Is it a triangle, channel, pennant, flag etc?
In the meantime I will do my best to guess the likely high & low for the day to try to find trade opportunities where we can risk 5 points in the hope of making 10.
Unfortunately I cannot make the market move, so this is the best we can do in these conditions.
Yesterday we held below 2335 in the morning to hit my target of 2328/25, with a low for the day at 2323.
We then shot higher & made a high for the day exactly at resistance at 2350/55, so watch this level again this morning & shorts need stops above 2360. Target is 2340 & 2335.
I would try a short again at 2375/80 (if we reach that far today)- stop above 2385.
Targets: 2365, 2355
A break higher however can be taken as a short term buy signal targeting 2407/10.
A move below 2335 can retarget 2328/25.
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