With risk assets rebounding off their lows this afternoon, safe-haven gold, which has stopped going higher over the past couple of days, could turn lower soon. If it does, this is one of the ways to potentially trade it short:
This is somewhat similar to the short gold trade that was taken on Tuesday, which hit the target. But this time I want to see some confirmation. This could be in the form of a possible break below the last hourly bullish thrust candle that was created a few hours ago.
The invalidation level at the moment is at 1655.50, but this may have to be adjusted should gold create a new high before breaking lower.
As we are going against the underlying bullish trend, the objective must be not too ambitious. In this case, we are targeting the liquidity below the most recent low.
I provide these types of trade signals in my discretionary Telegram group, which you can find more about HERE.
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