Gold bear on the roll
November is the groundbreaking month for the bear as big slide happened. The slide triggered by U.S presidential election which results in Trump came out as President. The price managed to close above $1,300 on the first two days of December, but the gain quickly reversed after the election result.
The precious gold should continue under pressure next year as U.S dollar gaining ground with three planned interest-rate increase mentioned by The Fed. There is also growing concern in Europe region as Brexit initiated “Leave Euro” sentiment. Several countries such as Italy, France were talking about the possibility to leave the European Union.
Click here to see Gold November forecast.
Gold finally drop lower after it failed to close above $1,300. November candlestick breach $1,300 but unable to close higher. Since the failure, the price of gold continue to decline and close the month at $1,173. December price continues moving lower toward the bearish red channel.
The month is coming to an end soon, and it seems gold will close near the channel and attempt for a bounce next month.
Full domination by the bear after bearish engulfing candlestick formed in the election week. The price continues to decline without stop, driving all bull into a panic. There is seven consecutive bearish candlesticks formed and looks to continue. Despite the strong bearish momentum, the price might bounce soon as it is near the previously broken channel.
Although all charts are pointing to strong bearish momentum, we have a consolidation ongoing in the daily chart. The consolidation range span from $1,122 to $1,144. The bull should wait until the price surpassed the top of range, or it can place aggressive long position at the bottom of the range.
Bullish trade – a Long position only when the price close above daily range $1,144, also successfully retest the level.
Bearish trade – Short position might have a lower chance as the price stick at the bottom right now. Wait for a retracement and observe $1,200 as the best place for the short position.