Mihai_Iacob

Gold found support, but will it hold?

Short
OANDA:XAUUSD   Gold Spot / U.S. Dollar
In my yesterday's post, I said that I'm looking to buy dips, but the only price that such a trade would make sense in such a bearish environment is under 1810, the price hasn't gone there, instead stabilized after some dips in 1815 zone, so, at this moment I'm out of any Gold trade...
With the price finding support at 1815 and consolidating for 2 days already, the big question arises: Has gold found a bottom and reverse from here?
In my opinion, NO, this being just a pit stop.
With this in mind, I will switch to my classical approach, trading with the trend and I will look to sell rallies.
Obviously, the perfect entry for this would be 1855 broken support now resistance.
However, considering the power of the trend, I don't think the price would go there, so I will look under.
In conclusion, sell rallies could be a good strategy for Gold in the next few days, and swing traders could look for a break under 1800 with a target around 1780

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