This week, apart from my short trade on Tuesday, I’ve maintained a bullish outlook on Gold, suggesting buying the dips with the expectation of a breakout above the 3380-85 zone. I was targeting an acceleration above 3400 and eventually 3440. I followed through with this idea and bought in anticipation of the move.
However, something about Gold's recent price action raised a red flag for me, prompting me to close my buy positions. Let’s break it down:
Starting yesterday morning, the price action became erratic. Initially, we saw the expected breakout, but it was quickly reversed, and the price action turned choppy. Then came a series of quick pumps, followed by quick reversals—each time the market would move up, only to fall back again. As of writing, we’re sitting at 3388.
This kind of erratic movement usually suggests that we’re nearing a top, and even if Gold spikes again above 3400, I don’t want to hold positions in a market that’s so volatile and unsustainable in either direction.
So, I’m out for now, adopting a neutral to bearish stance.
If the price drops below 3370, it would indicate a likely top formation, and at that point, I’ll be looking to sell rallies; till then, wait and see.
Disclosure: I am part of TradeNation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
However, something about Gold's recent price action raised a red flag for me, prompting me to close my buy positions. Let’s break it down:
Starting yesterday morning, the price action became erratic. Initially, we saw the expected breakout, but it was quickly reversed, and the price action turned choppy. Then came a series of quick pumps, followed by quick reversals—each time the market would move up, only to fall back again. As of writing, we’re sitting at 3388.
This kind of erratic movement usually suggests that we’re nearing a top, and even if Gold spikes again above 3400, I don’t want to hold positions in a market that’s so volatile and unsustainable in either direction.
So, I’m out for now, adopting a neutral to bearish stance.
If the price drops below 3370, it would indicate a likely top formation, and at that point, I’ll be looking to sell rallies; till then, wait and see.
Disclosure: I am part of TradeNation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
📈 Forex & XAU/USD Channel:
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Disclaimer
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📈 Forex & XAU/USD Channel:
t.me/intradaytradingsignals
💎 Crypto Channel:
t.me/FanCryptocurrency
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.