Gold – Short Term Trading Idea

Sell Gold at $1940. Stop at 1965 for 1880 or 1855.

Price saw a big decline the day before but the low from that decline at $1859.55 may not be the lowest in this down move. The decline seems to be in the form of a 3-wave. There should be one more drop to at least $1859.55 to complete the downtrend. The Fibonacci 50% at $1954 should be the resistance to cap a corrective rally. 20EMA line is also near to this correction point, which should add weight to the importance of this resistance zone. MACD is still bearish and quite far away from the zero line, hinting of a strong bearish trend. Stochastic is rising but it is not strong and we may see a bearish crossover.

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