Sell Spot Gold In Front Of Fibonacci Resistance

Published 05/07/2013, 07:42 AM
Updated 05/14/2017, 06:45 AM

The long-term structure of prices recently moved lower to near the mid-point of the infamous 08/11 up move. Prices recently broke from the key support, suffering very heavy losses over a 48-hour period. After posting a low in front of our medium-term buy level, prices have reacted to the 61.8 percent Fibonacci retracement level of this move lower, which now offers good resistance.

Spot Gold
Sell in front 1,487 USD/oz resistance, the 61.8 percent Fibonacci retracement level of the recent down move, which has been tested a couple of times within the past two weeks. Targets will be at the most recent horizontal level and 38.2 percent Fibonacci level. Risks to this trade include a weaker dollar and temporary low volume price spikes.

Entry: Sell XAUUSD at 1,475
Stop: 1492 USD/oz
Target: Half at 1440 USD/oz and 1,425 USD/oz

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