Gold Direction using GC 04-13 E-mini Futures Contract. 1440 minutes Chart.

Gold drop faster than usually, and was looking to break bearish channel on weekly chart. Gold price close at 1580.4. You may think is a safe trade to take “Long” so we respect or trend line, but let me tell you, it’s not an easy trade to take. very tricky! . Sellers was so strong and so committed  that buyers wasn’t able to create any dissent resistances during past two weeks. 

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Gold Direction Long:

Gold direction long , if you are looking to take this trade. make sure you see buyers twice more than sellers. If we go long, not much to say…we are looking to respect bearish trend line. My targets are : 1st: 1592.0 , 2nd: 1619:  and 3rd 1647. 1592, are my “ safe target”, I will explain why later. and 1647 is the price we should hit and close at this price before another reversal. I will be honest,I don’t see this happen.

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Gold Direction Short:

Is what I’m looking for, next week . Is also a more complicated trade to take. As you can see, my lower red trend line was bridge with no resistance and lot’s of commitment from sellers side. And on the next candlestick, if we look what happen during the day, we will see; sellers try to bring price at 1543 and retest multiple bottom. I guess, they din’t have than much strength left, and decide to take a break. Buyers get in the market but with 50% less volume than last sellers move. It show, how much buyers are afraid to get in the market right now.

What will happen in futures days and what look for?

1st way:  If buyers decide to bring gold price at higher level, The first test will be 1592.0. 2nd, will be 1619.0. What can happen once we get in this range, is to get a consolidation. And depending on the winner, you have your direction.

Short target are : “red short trend line” , 1564.0  – 1543.0.

2nd way: we close on “the” trend line with 2 no supported price on the same candlestick from both party. Monday should give us the winner. I will prefer to see Sellers let buyer retest my 2nd target, and then get in the market to retest 1543.0.  If they close under, we will jump in the fight range for few days probably.

Short target are : 1543.0  – 1497.0 .,You may add another target between 1543.0 and 1500.0 , Is up to you. we will be in fight zone between both party, and you may want to be more “safe” at this level.

Gold Direction are not very clear this end of the week. Because I will be on vacation next week, I did my post before getting a clear direction. Is why I give you 3 different scenario.