#GOLD seasonally performs poorly this time of the year which could offer some short term opportunities.
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Before we take a look at the chart of Gold we can see that we have some confluences that suggest the price could fall. Seasonally through the month of November the price of Gold falls before the Santa rally. Recent retail sentiment data also shows us that retail traders are currently long in the market and adding to those positions whilst decreasing their short positions. This also suggests that we could see a move lower.
The weekly chart showed a bearish close last week and with the recent positive USD data we could see the price move back to the key support level around $1750.00.
The daily chart of Gold shows us that the price has recently formed a new lower low. We can also see that the price has broken through the trendline support adding further confluence to a move lower. If the price is going to continue down we should see the market continue to make lower highs and lower lows.
The 4hr chart shows us multiple areas where we can look for bearish opportunities. The recent supply zone before the news candle could be an area we watch for sellers to re enter the market. We could also see the price react from the double top neckline around $1790.00. If sellers enter the market here we could look for short opportunities from this zone.
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