Gold takes out an important 61.8 fib, now what? by Reece Marini

GOLD H4

G4

Gold has been trading heavily over the last several weeks even after initially finding solid buying interest on the 61.8 Fib at 1198.86. Gold has now taken out a large number of stops below the 61.8 in thin trading conditions.

GOLD H1

G1

As you can see from the chart above the smart money have been selling every chance they got on the 1:1 (Pink) rallies.

GOLD M15

G15

Selling rallies going forward is the best play in my opinion with the next level to keep a close eye on the 1:1 (Yellow) and 50 Fib that coincide at 1197.40/75, this level will likely attract solid selling from the bears looking to target large stops below 1131.60.

* A 1:1 refers to a current correction being equal in length to a prior correction

ABOUT REECE MARINI

Reece Marini is an FX trader and Director of the http://forexhft.com an instant Forex rebate and Signal provider, if you would like to subscribe to our daily reports you can do so here its FREE

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