Gold - Weekly Forecast 11th - 15th February
When gold finally broke above 1300, it was a sign that the price will continue to rally and it did.
But what's quite abnormal is how fast it gained another 26 dollars with no resistance and in just a few days.
However, seeing how bullish the gold is, many fell victim into a so-called 'hot deals' but only to find their positions been locked down as it ranged downwards.
How so? The indication comes with a very small candlestick coupled with a very high trading volume.
If the gold had stayed bullish, such a high trading volume should have caused the price to jump further and beyond 1330.
But on the contrary, the candlestick is so small and there could only be one reason - there's fast-growing selling pressure.
This is a clear sign of a stop to the bullish trend but not a confirmation to sell just yet.
In any case, we always look at two sides of the coin: the gold may reverse and start to fall OR the selling pressure has dissipated and the gold resume appreciation.
I will consider buying only if the price reaches the demand zone just below 1300.
I will consider selling from 1316 onward.
But what's quite abnormal is how fast it gained another 26 dollars with no resistance and in just a few days.
However, seeing how bullish the gold is, many fell victim into a so-called 'hot deals' but only to find their positions been locked down as it ranged downwards.
How so? The indication comes with a very small candlestick coupled with a very high trading volume.
If the gold had stayed bullish, such a high trading volume should have caused the price to jump further and beyond 1330.
But on the contrary, the candlestick is so small and there could only be one reason - there's fast-growing selling pressure.
This is a clear sign of a stop to the bullish trend but not a confirmation to sell just yet.
In any case, we always look at two sides of the coin: the gold may reverse and start to fall OR the selling pressure has dissipated and the gold resume appreciation.
I will consider buying only if the price reaches the demand zone just below 1300.
I will consider selling from 1316 onward.
