GOLD broke its short-term major support line last week and sent the price right down toward the $1200 level. The breakdown movement gave a bearish outlook in the short term and a neutral sign for the intermediate term.
Last week’s trades
It was a bad week for gold — the futures closed down about $40, one of the largest declines in the past few weeks — but a good week for gold traders.
Members following Nat’s calls had the opportunity to capture about $3,300 per contract in a simple trade shorting the break below her key line on Tuesday, and covering at her first buy level late Friday.
That was a straightforward trade that was profitable immediately and was never under water at any point. They should all be that easy.
This section contains the detailed buy/sell levels for this week. It is reserved for paid subscribers.
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The neckline zone ($1242-1239) of the double top pattern on the daily chart was broken. Now the psychological support at $1200 acts as the next support area. Because of the heavy selling last week, plus the bearish short-term PMO indicator, GOLD could slip down further.
It is more likely that the $1200 support may not hold in the coming weeks. Therefore, selling on the bounce will be the trading strategy for this week. The $1250-60 zone will be a major resistance area. A bounce close to but below that level will see the pattern sellers and trend sellers entering the market.