Once again we have reached a critical level in Gold. This is the time which I seldom leave my trading desk for long periods. Critical levels are make or break levels and the gold is trading right there at this moment. I have mark the red support line in my WAWS box and this red support level could be the first support which would prevent price from going down further. This recent downtrend in the Gold is due to the strength in the US Dollars as expectations are high for a rate hike by the Federal Reserves. This also comes after the elections risk storm passed. With Trump not be Trump recently, the markets seems to cool down a bit in volatility.
The next few days will give me an idea if buyers are present in this area. I would be giving it about 4 trading days to decide on its major move while tip toeing into the market. Any recovery in gold would see me targeting the 1255 area. A strong break below 1213 would see me targeting the next major support at 1050.
PIPtree WAWS for
GOLD = $1213, $1255, $1295
How accurate is WAWS?