12 Jan Gold at Gap Resistance For Possible Short Entry
A couple of quick charts on Gold to demonstrate an area of potential resistance, where confirmation may provide an opportunity to enter short positions.
For me personally, I don’t get excited about Gold in the way many do. The various commodity influenced trading forums appear to attract large numbers of Gold permabulls. From my perspective it’s just a chart like any other index that moves, albeit one that can show bearish (or bullish) divergences for long periods of time without follow-through.
I mention divergences because in both of these charts you can see MACD has implied bullish divergence, however, my experience of recognising MACD formations (and it’s just that, nothing technical or calculated) suggests there is reasonable probability that MACD is tracing a reactive move as opposed to impulsive, i.e, the divergence isn’t bullish. Nonetheless, be aware that it is there.
Maybe I’ll just let the charts do the talking!
Daily candle has been rejected from “gap resistance” combined with the green 200 MA. I would like to see a failed attack on those other MA’s before committing to a fully fledged swing short position:
The 4 hourly chart shows price has retraced 50% of the move from the last swing high to the recent low and may find resistance at this fib level, more so as the 200MA often encourages swing traders to trail into positions on the 4 hourly time frame. It is without doubt my favourite moving average on this time frame and certainly helps to define a bull or bear move:
It’s not often I trade Gold unless the chart is really compelling. I wouldn’t quite go as far as to say this chart is compelling, but it’s definitely not far from it. If I take a swing position I’ll update the comments section underneath this post and update the trades log to the right of this post. Initial upside risk would be the 61.8% fibonacci level.