The gold has wiped out all gains within this week.
If the tone was set in a bullish manner in the beginning, the downward movement from the peak will attract many late buyers.
However, the price makes new low again and again, causing many late buyers to be trapped.
Now that the price has retraced back to this week's opening price, it is very likely that most late buyers have stopped out
There will still be some stubborn ones who hold firmly to their view but another strong movement downward could probably force them out in the end.
And that's exactly where a strong rebound will occur, taking away all profits on the table and trapped sellers who finally believe that the uptrend has reversed and entered at the low prices.
Then again, if 1320 does not hold, the price may drop all the way to 1314.
If the tone was set in a bullish manner in the beginning, the downward movement from the peak will attract many late buyers.
However, the price makes new low again and again, causing many late buyers to be trapped.
Now that the price has retraced back to this week's opening price, it is very likely that most late buyers have stopped out
There will still be some stubborn ones who hold firmly to their view but another strong movement downward could probably force them out in the end.
And that's exactly where a strong rebound will occur, taking away all profits on the table and trapped sellers who finally believe that the uptrend has reversed and entered at the low prices.
Then again, if 1320 does not hold, the price may drop all the way to 1314.