Gold - Waiting for a short signal around Fib 38% level

Gold is at the fib 38% retracement level and could be about to move lower again. That said, recent bulls action has been looking strong, so we need to get a clear price action signal before entering short. There was some small rejection of the Fib38% level on 12/01 but it was by no means compelling - more of a whimper, but it does show that there is at least some weakness there.

Price came within 200 points of bouncing off the long term trend line back in December, but I don't think that's close enough for me, and most likely we'll see one more push down, touch the trend line and then, if that holds, we could well see a rally much higher.

Weekly Trend line

Zlecenie aktywne:

Price has now stalled at the 100EMA and looks ready to reverse. We have a bearish engulfing signal and I will now enter, placing my SL above the swing high.