We are still bullish on gold
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Overall bull structure in gold is still inctact
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Short term momo bear targets hit
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Bull´s buy zone holding
Gold has been in a very strong bullish market for the entire year since it bottomed at around $1050 at the end of 2015. It quickly jumped $200 to break with the $1200 level where it stalled before hitting its highs around $1372. We are tradig at $1264 at the moment.
On November 4th we saw gold have its biggest one day drop of the yearbreaking with the very important $1300 psychological level which was also a vey thick buying zone. All those buy orders were absorbed price dropped $50 within a couple of sdays hitting another important level: $1250.
This is pretty obvious by looking at the chart but I´d like to point it out because of how important the zones in play are. After hitting the bull flag targets alongisde mid term (FE 127.2) and short term (FE 161.8) bullish targets, price started to trade inside what looked like a continuation pennant which was invalñidated by the drop below $1300.
Now, at the other side of the table, not only have we hit short term bear targets (FE 227.2), but we´ve also hit a very thick bull´s buy zone at $1250. We have some short term bulls buying the dip at the 76.4% and long term bulls adding to their positions at the 38.2%.
Should sellers start to push price down and break with this level and the long term bull structure we could see another round of bulls around $1205. But if our scenario plays out we should be looking at profit taking at $1300, $1340 and $1370.
Gold Current Trading Positions
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