That’s what just happened, so if one wants to open a short position in gold, I think it’s now justified”
Gold price reversed its course yesterday in a classic way (shooting star candlestick), but since we saw those reversals a few times recently and they didn’t result in declines, I didn’t focus on yesterday’s pattern… Until I saw a change in the regular events earlier today.
Today is the first day since March 25 when gold hasn’t made a new intraday high. And given what’s happening in the currency sector, it might not be able to make that high at all. Perhaps it will be able to move to new highs only after many weeks (months?) of declines. We’ll see about that when gold approaches its previous highs.
For now, it’s quite clear that gold has indeed topped in the upper part of my target area (okay, it moved a few dollars above it, but not more than that) and that the huge downswing has already begun. Of course, since it’s just started, it’s not big yet. Which means that the trading opportunity is still here.
Let’s take a closer look at the key technical event of today’s session:
