Don’t get tricked by gold: it’s time to Sell, not to Buy!
I have heard recently that gold has depreciated “way too much” and “it’s time to buy”. With my respect to all professional and amateur traders and analysts, I would totally disagree with that opinion. On the contrary, I believe that gold right now is about to make another leg downward, and the charts are clearly supporting my belief.
The precious metal broke through the long-term $1180 support on Friday, and that was confirmed on a daily, weekly and monthly basis. Bullion is currently consolidating below that crucial technical level, without even testing it, which lends further support to the argument that the downtrend is firmly intact. The trading range for gold in the last couple of days has been between $1174 and $1161.
The upper bound of that range provides good opportunities to sell gold with a target of $1050. Entries above $1170 give the chance for a tight stop above the $1180 key support turned into resistance. I personally would place a stop above $1205, just to make sure it is not hit by accident. As I have stated on a number of occassions before, a stop is an absolute must, not just with gold! After all we are chasing profits, and the last thing we want is a sizeable loss.
This article expresses the opinion of Profitease.com, which is based on chart observations. It should not be taken as advice on buying or selling any financial instrument! Profitease.com does not accept any liability for losses or other damages endured as a result of using this article for trading purposes!
