Midday Gold Analysis,
After a long and grueling period of wide-ranging consolidation, gold finally made a decisive move this week. The chart clearly shows that prices have broken above the top of the multi-week consolidation range on strong volume. If prices repeatedly test the 4125–4145 area but fail to hold above it, and show clear signs of stalling or form a large bearish candle, a bearish reversal signal is confirmed.
Trading recommendation: Open short positions in the 4130–4120 range. Target: if 4100 breaks, look for 4080. Stop loss: 4140.
After a long and grueling period of wide-ranging consolidation, gold finally made a decisive move this week. The chart clearly shows that prices have broken above the top of the multi-week consolidation range on strong volume. If prices repeatedly test the 4125–4145 area but fail to hold above it, and show clear signs of stalling or form a large bearish candle, a bearish reversal signal is confirmed.
Trading recommendation: Open short positions in the 4130–4120 range. Target: if 4100 breaks, look for 4080. Stop loss: 4140.
