Gold And Silver: The Bulls Failed

Aibek Burabayev - Contributor - Metals

Gold - Classic Chart

Daily Gold Chart

Another profitable week for the bulls ended and so did the upward momentum. Price elevated for a decent $40 from my last post and almost touched the $1223 resistance area on Thursday, but failed below $1220 and then quickly retraced down for $15 to a $1204 close.

The rule of the game is set so that if you don’t keep buying to push the market up, sellers will appear and you would be buying all the way down. Once weakness appeared, the bears took the ball and started their own game, pulling the price down from recent highs. Monday brought more selling pressure to the game and the price is now below the first support level at $1190 (former resistance, highlighted in green). If we close below $1190, then I would not rule out price reaching $1170/$1131 supports. Sellers can benefit from the trade lower, with a stop set just above $1200 and take profit put above $1131. $20 of risk versus $55 of profit, a sound ratio. Continue reading "Gold And Silver: The Bulls Failed"