Gold was steady inside a range of 1.303 - 1.365 and broke through the important support of 1.280!
This caused a massive sell-off as every else down to to low of 1.160 which got stronger after we`ve violated the trendline which started at the low of November 2015.
And as always - the 61,8% retracement was the bulls HEROS which is @ 1.183 and is the current support after this sell-off. We`ve started to retrace up to the trendline again and are currently at a VERY crucial ZONE.
This ZONE is a very strong resistance and should be decisive for the next move!
We are at the 61,8% retracement of the previous sell-off which is at the trendline Addotionally we`ve almost reached the 1,61% extension-level of the bulls whose bought this retracement.
Time to take profit or stack up positions?
Is all this a downtrend and we continue after this retracement? Or will this turn out to be a fakeout and we continue the uptrend above the trendline?
Fundamentally I see a lot of potential in Gold which alwys used to be a safe haven in bloody stock-markets. The inverted yield-curve used to be a very reliable indicator for a upcoming recession and could change the cashflow out of stocks into alternatives like gold!
We will see what happens!
I WISH YOU A HAPPY NEW YEARS EVE! Enjoy the time with family and friends! :-)
--------------------------------------------------------------------------------------- LEAVE A LIKE AND A COMMENT - I appreciate every support! =)