Here’s how Waverly Advisors envision it happening:
We see a potent trade setting up in Gold futures: a short on a break below this year-long support level. Though it is probably premature to enter shorts at current prices, the chart illustrates a schematic for how the ideal trade would play out: support would break on good downward momentum, a pause or consolidation, and then the trend continues into further legs down. The ideal trade location for short entries is in that first consolidation. For now, we see little to do, but keep this rough trade plan in mind for the coming months.
Photo: Waverly Advisors
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