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Gold Traders – It’s better to wait for a retest or a correction

A valid technical breakout at support level 1310.57

Beginning of October resulted on sharp sell off in Gold price action. The prime movers of market sentiment are FED, US Elections and Global monetary policy conditions. Rise in interest rates and absence of inflation are negative factors for gold. With FED rate hike prospects gaining strong influence, gold tumbled as a consequence.

Price Action Trading aspects of Gold

Price action breakout at support in Gold

The current sentiment is bearish in precious metal. We can see the price action of daily chart as an evidence for this claim. Technical breakout on support level 1310.57 is a valid one, but in order to sustain the selling pressure, any rallies whether impulsive or corrective should result in selloff. It will be a confirmation for selling pressure. Any strong sign of buyers (such as a sharp upswing or strong bullish trend bar) should be treated with respect. In such circumstances, we should re-analyze our trading plan in the basis of resulting price action.

In short, Traders should wait for a retest or some corrective rallies to initiate positions. If we see any strong upswings or any primal indication of buying pressure – We need to reassess our trading plan.

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About the Author:

Balaji is a Speculator, Investor and Trader (All in All!!!) and self published author. Trading in the Markets since decade, have seen more ups and downs along with institutional trader's lifestyle. He usually trades Nifty, Bank Nifty, Commodities, Futures cum Options around both Indian and global Markets. Balaji applies highly analytical and systematic Price Action strategies He blogs passionately about Trading strategies, Price Action Trading, Technical analysis, Macro events, Market setups, Financial and Economical topics. Apart from Trading and Blogging, Balaji also mentors aspiring Traders and Investors on becoming successful in highly competitive financial Markets.

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