Friday 17 June 2016

Contradictory Signals for Gold




I am looking at the Gold daily time-frame and I am wondering whether or not it will continue falling. It has clearly broken above the resistance at $1,300, but afterwards it has rebounded and formed a big and very obvious shooting star candlestick on said daily time-frame. On the other hand it is also clearly struggling to break below $1,280 again. So what’s next for Gold? The clearest signal here is the shooting star candlestick on the daily time-frame so this is the signal I would trust. Despite the current retracement to the upside that candlestick is still a valid signal. If the move to the downside does continue and Gold does break below $1,280 yet again there will likely be a further drop towards $1,250.

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