Gold Moves Lower as Expected

Gold (1229.85)

Very interesting setup on our above daily MT 4 chart for the yellow metal. Gold has pushed lower. However, the picture is not as clear as what we are seeing on the daily chart. Yes, we failed at the 55 DMA and have since moved lower. There appears to be a bearish pattern developing. We have near term support 1216.90, with a close below that targeting 1193.20. If we reverse course and move higher we have to break back above the congestion area marked at 1251.30 to 1255.10. If this happens we would then have a bottom in place and a stronger recovery higher.

A little trading strategy. Nothing has really changed. Looking at the below 4 hour MT 4 chart, we see a different picture. You will see a tight consolidation pattern emerging. While being this close to a support level, entering short trades is not a viable course of action. With lack of bullish reversal signals, we remain flat on the yellow metal now as we wait on clearer and more definitive signals. If you are trading daily, fast actions, then look for peaks and valleys. In other words sell high and buy low. Price action is too choppy to ascertain a true direction for now.