Gold Shorts Still in Play

Good morning traders,

Welcome back to the final trading week before Christmas. It will be from this week that liquidity starts to fall and things could go one of two ways.

First, price could well do absolutely nothing. Trade in a boring, sideways range as tight as 20 pips a day. But it could just as easily lurch a couple of hundred pips straight down on next to no news, simply because there aren’t any orders in the market to absorb the move.

I want to start off the week with a warning to keep this mind and manage your risk accordingly. There is no point in ruining what has been a great year for so many of you, simply because you’re unable to step away and enjoy yourself at the very end of the year.

Onto the charts and a continuation of the bearish Gold trend we’ve been trading, with price still stepping down and turning previous support into resistance cleanly.

XAU/USD Hourly:

Click on chart to see a larger view.

While there have been a few more steps, I’ve just highlighted the 2 that are actual retests thats are still in play.

I’m interested to hear how you’ve managed your position if you were trading short off the higher time frame resistance that held. Are you still in?

Best of probabilities to you!

Dane Williams – Vantage FX

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Source: Vantage FX Blog