By FXEmpire.com
The gold markets continued to fall on Tuesday as the risk off trade is in full force. The $1,500 level below is our last line of support at the moment, and it does in fact look like we are going to test it. However, shorting at this point is probably chasing the trade, something that can kill a trading account. We aren’t comfortable selling until we get a strong negative close below that $1,500 level, and in fact we think this level should be very supportive. If it gives way, the rout could be on. At this point in time, if you are a short-term trader you may find plenty of selling opportunities if we manage to get below the bottom of the range of trading on Tuesday. In the meantime, we are looking at a possible long-term buy in the area of $1,500 but will need to see a hammer or bullish engulfing candle in order to get long at that point.
Click here for further Gold Forecast.
Originally posted here
