Even despite a positive news background and a decrease in tension between the US and China, gold continues to strengthen its position and is currently trying to gain a foothold above the psychologically important level of $ 1,500 per ounce. Some analysts are already beginning to predict a further increase in prices for the yellow metal, however, I would not rush to open long positions at current prices, as Several significant factors appeared that indicate a possible correctional decline in quotes.
1. At 1515.00 there are large offers. It is clearly seen that at this point is a serious limit player who, so far, can easily meet all the demand for gold at attractive prices.
2. On the TF N1 the reversal pattern “Wedge” is formed. A bearish divergence also appeared.
Therefore, I opened a short position at the current price with the following parameters:
- sell – 1512.00;
- take profit – 1485.00;
- stop loss – 1520.00.
If my forecast is successfully fulfilled, then during the “mirror level” retest of 1485.00 it will be possible to look at the resumption of purchases in the framework of the scenario below.
All profitable trading and good mood!