The last 10 trading days in Gold can be summed up in just one word: madness.
Back on April 9, the price was still under 3000 – yesterday it kissed 3500, marking an explosive 5000-pip rally in less than two weeks. That’s over 15% gain in no time!
As I mentioned in yesterday’s educational post, even though I expected a major correction, the lack of a clear stop loss setup made me choose the safest option: staying out.
Well, Gold did what it does best – surprise. Just before reaching a new all-time high, price reversed and at the time of writing, it has already dropped over 1600 pips from the peak.
From a technical perspective, there are some important developments:
– Price has broken below the rising trendline, signaling a potential shift on short term
– Now, it’s heading towards the 3250 support zone, which is aligned with the 50% Fibonacci retracement of the recent rally.
– This area could become a battleground – if bulls step in, we might see another bounce.
Trading Plan:
From the selling side, the only potential setup I see is around 3450, but with a huge stop loss, making it less attractive.
On the buy side, I’ll be watching the 3250 level closely. If price action shows strength there, I may consider entering long – but only if the market conditions align properly.
Until then, I’m observing from the sidelines. No FOMO – just disciplined strategy.
Disclosure: I am part of Trade Nation’s Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.