#Gold prices have been climbing significantly recently however, will the rally start to reverse?
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Gold has been rallying significantly lately, this could be due to the market hedging the risk of rising inflation in the US. The market seasonally is bearish and typically underforms through November before the Christmas bullish period. This could offer some short opportunities if the right set up forms.
GOLD Daily Chart
The Gold daily chart shows the price is in a strong upward trend, the price has also recently broken out of a monthly consolidation pattern showing buyers are in control. If the market is going to continue to trend higher we should see the price form higher highs and higher lows. The higher lows could form at support levels such as $1830.00. We can see here that this has been used as a strong level of resistance more recently. This area could act as support if the price was to reach this zone again and form bullish price action.
In a recent Gold trading strategy video we showed you how to take advantage of this market when the daily price forms a low daily range. After these candles form we often see an impulsive phase form. This can offer short term trading opportunities. Yesterday one of the low daily range candles formed which offered us a short idea.
The Trading Time Frame
If the daily chart is going to move down to the $1830.00 support we could see the price form a bearish trend on the lower time frame. If the market breaks the low daily range candle low and continues down we could use this area as a resistance point for further short opportunities.
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