Simple setup here... there’s a convergence of resistance in this price zone.
1st - Price is at the top of a downward channel
2nd - Price is at a monthly Pivot Point (which has shown rejections for the past few days)
3rd - Price is at a psychological level of 1500.
On top of all of this, there’s recently been a strong bullish trend on gold and today’s green bar could easily be institutional players trapping people into bad long positions.
There’s two ways to play this... a straight forward short on the spot price for short term traders
OR
Buy some out of the money puts around 1440 For expiry in December for the trader who is happy holding a position.
1st - Price is at the top of a downward channel
2nd - Price is at a monthly Pivot Point (which has shown rejections for the past few days)
3rd - Price is at a psychological level of 1500.
On top of all of this, there’s recently been a strong bullish trend on gold and today’s green bar could easily be institutional players trapping people into bad long positions.
There’s two ways to play this... a straight forward short on the spot price for short term traders
OR
Buy some out of the money puts around 1440 For expiry in December for the trader who is happy holding a position.