Gold – Looking Weak, And Possibly a Deeper Breakdown
For the last 5 days, Gold has been consolidating on the lows of the recent downtrend, barely holding onto the 1242 support level mentioned in our previous market commentaries. The last few rejections have all produced LHs (lower highs), with the most recent one unable to make it above the 20 ema on the 1hr chart. My overall read is a price action squeeze is forming with a likely move lower.
Our Trade Idea: If we get selling around the London open, with a break below 1240, look to get short on a weak pullback to 1240/42. Downside support levels are 1223 and 1213, so look to take profit just
shy of these levels.
NOTE: Tomorrow is the ECB meeting which may inject a lot of volatility into the markets, so be cautious.
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