17 Jun 2014
Opportunity to go short Gold - 2ndSkies
FXStreet (Bali) - Chris Capre, Founder at 2ndSkies Forex, notes the formation of a daily bearish pin bar at key level, which suggests a potential short opportunity, the trader and educator says.
Key Quotes
"After an impressive run up from 1240 to 1284, Gold found a combination of sellers along with medium term bulls taking profit, and in the process forming a daily pin bar. You will notice how the structure of the consolidations was pretty consistent on the first two breakouts, but the third one was really tight, suggesting a possible transition after the breakout."
"The impulsive selling from the 1284 key level is the first time a pullback has taken out the prior consolidation lows, also lending itself to a bearish picture short term."
"Our Trade Idea: Short term we are maintaining a bearish bias in light of the price action structural changes discussed above. Conservative traders can look for pullbacks to around 1274-1278 to get short, while more aggressive traders can look to sell under 1273. Downside levels to watch are 1265 and 1257."
Key Quotes
"After an impressive run up from 1240 to 1284, Gold found a combination of sellers along with medium term bulls taking profit, and in the process forming a daily pin bar. You will notice how the structure of the consolidations was pretty consistent on the first two breakouts, but the third one was really tight, suggesting a possible transition after the breakout."
"The impulsive selling from the 1284 key level is the first time a pullback has taken out the prior consolidation lows, also lending itself to a bearish picture short term."
"Our Trade Idea: Short term we are maintaining a bearish bias in light of the price action structural changes discussed above. Conservative traders can look for pullbacks to around 1274-1278 to get short, while more aggressive traders can look to sell under 1273. Downside levels to watch are 1265 and 1257."