I will be tracking Gold for a sell trading opportunity this week. Here’s why, from a technical perspectiv.
On the H4 time frame, the order flow is in favour of bears. A minor descending trendline is in play and the technicals are synced southward but the market mode is a consolidation. Towards the end of last Friday sessions, price action was slightly influenced by bulls but the two candlesticks printed were small in size. Nevertheless, should bulls attempt to push price action northward in the early part of this week, we may see them target the minor horizontal resistance around 1250.08/1257.06 or the minor descending trendline before a southward turnaround. Failure on the part of bulls may see bears seize the initiative after a sideways operation. An initial target of bears is likely to be the horizontal support around 1213.90.
I will wait for the market to show me its disposition after Monday session. I expect a northward retracement to a mean area first before considering a sell trading opportunity.
I may be wrong. Trade safe and prosper.