1300.0 May Be Strong Resistance For Gold
The last three sessions have been brutal for gold, highlighted by price breaking below the 1300.0 handle. Driven by a strengthening dollar and a fresh appetite for risk, sellers have entered the market in force. Will today’s action finally produce a green candlestick on the daily chart?
At press time, June gold futures are trading very near flat for the session. Buyers have made an intraday stand just above the 1285.0 area, prompting a reversal of early weakness. In the event that the session low of 1285.7 holds firm, a key area of topside resistance may come into play.
June Gold Futures: Technical Outlook
Tuesday brought a major bearish intraday trend, taking out the key support level of 1300.0. A significant bullish retracement may set up a short trade for coming sessions.
Here the key topside resistance levels to watch as long as 1285.7 remains today’s low:
- Resistance(1): Key Psyche Level, 1300.0
- Resistance(2): 38% Retracement of Current Wave, 1301.2
Bottom Line: Numbers don’t get much bigger or rounder than 1300.0 in the bullion markets. Traders and investors alike are watching this area with extreme interest. A short entry on a test of this level is an ideal way of joining the intermediate-term bearish trend.
Until elected, I will have sell orders queued up from 1299.4 with an initial stop at 1301.6. This trade is good for 22 ticks using a 1:1 risk vs reward management plan. With a bit of luck, these sell orders will be executed in the next 24 hours.
As always, trade smart and keep your leverage in check!