Gold Forms Daily Pin Bar Sell Signal at Key Level

Gold – Daily Pin Bar at Key Level
After an impressive run up from 1240 to 1284, Gold found a combination of sellers along with medium term bulls taking profit, and in the process forming a daily pin bar. You will notice how the structure of the consolidations was pretty consistent on the first two breakouts, but the third one was really tight, suggesting a possible transition after the breakout (blue boxes in chart below).

The impulsive selling from the 1284 key level is the first time a pullback has taken out the prior consolidation lows, also lending itself to a bearish picture short term.

Our Trade Idea: Short term we are maintaining a bearish bias in light of the price action structural changes discussed above. Conservative traders can look for pullbacks to around 1274-1278 to get short, while more aggressive traders can look to sell under 1273. Downside levels to watch are 1265 and 1257.


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I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

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