Gold is challenging the underside of the $1,200 key target level after a strong rally.
Let’s update our short-term charts and plan the next swing from here:
On the intraday frame, we can see the strong rally “up away from” the $1,150 level “toward” our $1,200 target.
Buyers have taken profits logically into the underside of this key price target.
For trade planning, we’ll again trade the departure “away from” $1,200.
See the prior update and the “This time is different with a breakout” planning from last week’s post.
Whatever other strategies you’re using, focus on $1,200 and the eventual departure (swing) from this level.
Here’s the Daily Chart for additional planning and updated levels on a breakout or ‘fall’ from resistance:
We were planning the “departure from $1,150″ at the 200 day SMA and were ready for a bullish breakout if it occurred.
The same logic then applies now into $1,200.
Price is currently stalling (consolidating) underneath $1,200 and logic suggests a sell-swing lower.
However, just like the “Battle for $1,150,” an additional upside break could ignite another breakout rally.
Upside targets above $1,200 – should it occur – extend initially toward $1,250’s prior swing high.
Otherwise a simple retracement lower opens a sell pathway back to the breakout at $1,150.
Use these simple reference levels for planning and managing your gold trades.
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
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