I have been watching Gold very intensely recently, particularly, when it approached very important resistance of 1350 last week. When it ran to 1348 and suddenly retraced, I initiated a short position (I sold Gold). Why?
Gold flirted with the level for quite some time and will most likely flirt for some more time. Every time it reaches the level, the price gets rejected and runs to support. From my perspective, this time is no different. I believe we are going to see 1000 level before strong uptrend resumes. We might see a brief run up slightly up 1350, but technical picture on weekly and monthly charts give me a bearish perspective. I will continue shorting Gold (selling it) when it runs to various resistance levels along the road. Of course, I have stop losses, in case I am wrong. But, my profit targets always bigger than stop losses (3:1, 4:1, sometimes even more).
Short term profit target is 1300. I think we will go further to 1200, but not that fast. More waves up and down are in store for us. Anyway, by this post I simply wanted to draw your attention to the fact, that you can play both sides (buy and sell) in any instrument: Gold, currencies, stocks or cryptocurrencies.
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capital you’re prepared to lose.
Past performance is not an
indication of future results. This
content is for educational purposes
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