Gold rallied yesterday approximately 20$. However nothing has changed raltively to our longer term trading strategy. Gold still remains inside the tight trading range and within the triangle limits as depicted on the chart. This could prove a good opportunity to sell as prices are close to the 1630-40$ resistance. We could witness another rejection at these levels and another downward move towards the lower support limit of the triangle that stands at 1550$. If however gold breaks out above 1630-40$, then a large move towards 1750$ could be expected.
My preferred strategy is to sell near resistance and place a stop reverse order if a break out occurs. Otherwise we could witness a large decline towards 1300 if 1550$ and 1525$ are broken.
Thank you for taking the time to read my thoughts on Gold.
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