Above $1169 Gets a Bounce to $1235- Technical Trade

 

In stark contrast to our previous posts today, we are showing you what we are looking at as traders in Gold. Yes we are biased bearish for sure, looking to sell rallies.

However, any level that is a trigger for a bearish momentum player is by definition a support level for a contrarian  Bull swing-trader looking for a relief rally.  Our last such recommendation was a relief rally that took Gold from $1250 to $1301. It was a strong trade as it was accompanied by a non confirmation in the RSI.

This one is not as compelling due to a lack of RSI info, but the candle situation looks nice.

If we personally are looking to short Gold under $1169 for a quick buck, then that means we are either

  1. not selling here or
  2. short under $1172-$1169 and will have to cover above $1272

For us the better long trade would be if we

  1. sold Gold under $1169.
  2. Then we were stopped out and reversed above $1272.

The dream would be that another non-confirmation RSI would then appear. But these are momentum trades.

 

 

good Luck

Read more by Soren K.Group