Gold – Looking for Weaknesses in the Market

14 May - Gold Daily

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Hi All,

This is just a quick update on Gold. Since my commentary on the 2nd May (see article), Gold price has only moved side ways. Things got a wee bit exciting two days ago when price broke out of the range and closed with a Low Test Bar. This is usually a good indication of a false breakout to go long, however, that has not happened yet.

Right now, I cannot give you a solid technical set up yet. However, I do believe that buyers and sellers have their weaknesses and, as I write this article, I can see two potential rally points where I can take some money. (1) The Low Test Bar on the 10th May (Green arrow) is still a valid false breakout point and you can rest assure that there are already some buyers who have placed their long orders above the bar, eagerly waiting for them to trigger. (2) More exciting than that, the top of the range (Blue arrow and above $1480) seems like a really good place to put sellers’ stop orders. Since a seller’s stop is also a buy order, that looks like a good place to take advantage of those sellers who got it wrong.

Anyway, that’s just my view on market psychology. Please keep to your own trading rules and risk manage properly when you enter the market. Thank you and happy trading!!

 

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