Saturday, June 9, 2012

XAUUSD Analysis Forecast 11 June

Gold has been a on downtrend but shot up recently, causing many others to turn bullish on gold. Yet, gold did something last week which clearly showed that bears were in control.

Notice the how the two large candlestick up didn't manage to sustain the gains. Price went back to the 3 week consolidation last week.

The blue region outline acts as a strong resistance where gold is expected to be resisted. With it being a past resistance and in line with fibonacci retracement 50% and a fibonacci confluence zone, we look to short when price has clearly bounce off the resistance level. Riding the trend down, we are looking for price to break through the previous 3 week's low. If price manages to break through, we will see a big move down.

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