Last week, Gold fell significantly after reaching around 1315 level and now sits well below 1300 level. This could be due to Feds who decided to be hawkish recently, rising the possibilities of one more rate hike this year.
The kind of candle from last week is what some might call a ‘kangaroo tail’ which suggests a higher possibility of a continuation of the prevailing trend rather than reversal. Therefore it is likely that Gold is headed towards 1250 level. However, if it can break above the top of the tail shown in the chart, it is extremely bullish.
Trading preference
Our preference is to sell below the low of last week candle at 1275 or we prefer to buy above 1313.50
