Last Friday’s nonfarm payroll data was clearly bearish. Did a lot of people panic and blindly expect a sharp drop? Does bearish data necessarily mean gold prices will plunge in one direction? Is that really what happened? The market taught everyone a harsh lesson! The bearish nonfarm data pressured gold prices lower, with prices touching the 4027 level before immediately finding support and stabilizing. A sustained, choppy rebound followed, as the bears simply had no momentum to keep prices falling!
While the market was playing up the bearish nonfarm data, expectations of a December rate hike were also gaining traction, throwing many people off track! But have you considered this? This decline had already priced in all the bearish expectations well in advance. Once expectations have played out, is the market really going to plunge again?
The answer is yes: a major plunge is unlikely, but a modest decline is certainly on the cards. The bearish expectations that were priced in early were only those anticipated so far; what comes next is still ahead! So for today, we can simply look for opportunities to sell at higher levels!
In the short term, watch the 4080–4100 area as resistance. As long as this level holds, we can keep selling! If it breaks above this area, then we’ll consider switching direction!
Morning trade idea: Sell at 4080, target 4030, stop at 4100#XAUUSD❤️ $XAU
While the market was playing up the bearish nonfarm data, expectations of a December rate hike were also gaining traction, throwing many people off track! But have you considered this? This decline had already priced in all the bearish expectations well in advance. Once expectations have played out, is the market really going to plunge again?
The answer is yes: a major plunge is unlikely, but a modest decline is certainly on the cards. The bearish expectations that were priced in early were only those anticipated so far; what comes next is still ahead! So for today, we can simply look for opportunities to sell at higher levels!
In the short term, watch the 4080–4100 area as resistance. As long as this level holds, we can keep selling! If it breaks above this area, then we’ll consider switching direction!
Morning trade idea: Sell at 4080, target 4030, stop at 4100#XAUUSD❤️ $XAU
