GOLD D1 15.12.2017 Our expectations:
The price has break key diagonal support and current resistance, and now we have to wait for the break test.
The target area is quite strong around the $1270 level, where we have diagonal resistances and also the non-clinkers of the activated Head & Shoulders.
The probability of crossing 50 SMA and 200 SMA (deadly intersection) increases the probability of a downward impulse for precious metal.
DeM(14) is in a resale zone, and despite the upward spin, it remains below 0.3, which creates expectation for the formation of a short-term flagship formation and a new downward movement.
Positioning levels around 1270 to minimize risk with SL at 1286 levels.
Alternative scenario: Breaking the price above the resistance zone (at least 1 whole bar over the resistance) will break the negative scenario and we can expect a price increase.
Trader Nikolay Georgiev
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