After a mild bounce yesterday from the 1564 low on Tuesday, gold has sold off again overnight and is retesting the 1564 level. As we wrote yesterday, we expect gold to test 1550 and probably 1525-1530 shortly - the reaction there will dictate our next trade.
In our opinion, the immediate outlook is starting to look increasingly bearish and a breach of the major support at 1525 more likely.
This would persent the most obvious short trade we have seen since the start of this bull market in gold, however we expect the market to recover quickly from any breach and rally next year to new highs.
In our opinion, the immediate outlook is starting to look increasingly bearish and a breach of the major support at 1525 more likely.
This would persent the most obvious short trade we have seen since the start of this bull market in gold, however we expect the market to recover quickly from any breach and rally next year to new highs.