Gold, after a long uptrend reached a peak point at 1350 area which resulted in a sharp drop down to 1284 level. Price is currtently trading at 1292 after we saw a significant lower high level after the drop from 1350 level.
Few potential short positions to consider is to wait for a pullback towards 1307.5 level where price broke the support or a third touch of the trendline which I've drawn from the significant lower high level. This would indeed be the more favored scenario with better risk reward but there is another more likely possibility.
Should price show signs of weakness and drop down below 1285 support, I will be looking out for any sort of retest of the broken support to enter short for following weeks.
Targets to consider looking forward are 1275 monthly key level and 1240 for longer term. What would invalidate the setup is a break of the trendline or hourly candle close above 1312.50 weekly key level.
Few potential short positions to consider is to wait for a pullback towards 1307.5 level where price broke the support or a third touch of the trendline which I've drawn from the significant lower high level. This would indeed be the more favored scenario with better risk reward but there is another more likely possibility.
Should price show signs of weakness and drop down below 1285 support, I will be looking out for any sort of retest of the broken support to enter short for following weeks.
Targets to consider looking forward are 1275 monthly key level and 1240 for longer term. What would invalidate the setup is a break of the trendline or hourly candle close above 1312.50 weekly key level.