Gold Monthly Chart and Weekly Chart
Bearish candle formed, with the candle top at 1558.89,
I shorted Gold at 1550, while FR80 is 1554, I put my SL $7.5 away,got triggered, while Gold making another attempt to test May-2011 high 1576.15. Immediately after the high 1558.89, Gold triggered a massive sell, down to 1545 on the same day, 1520 the next day, and settle at 1502 the 3rd day, Friday.
I put up the 4Hour chart for Gold, and observe price action when Gold is trading way below its EMA50 line. Observe the same when Gold is trading way above its EMA50 line. What we get, is ... a Bounce!
Again on 4Hour chart, during current bearish sentiment, Gold formed a pincer bottom at 1498.96 and 1499.
Not to ignore the fundamentals:
1. QE2 ends
2. no hint for stimulation, no hint for QE2.5 or QE3...
3. Fed Fund Rate remain the same
4. US dollar index reverse up.
The Greenback will continue to pressure Gold price.
I am not sure whether Gold will bounce off this low around 1500, if Gold is going to bounce off the low, 1510 will be its immediate resistance. 1530, the tough resistance that could possibly happen but Gold shall not cross above 1540 level again next week to ensure the continuation of this correction until 1445-50. The 15 mins chart illustrate my view.
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