Gold – Daily Pin Bar at Key Level
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 (blue boxes in chart below).
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.
