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O’Hare: Technical triggers signal Gold short
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Steve O’Hare from First 4 Trading is interested in shorting gold after spotting recent bearish indicators. A bearish reversal would put an end to gold’s 5 day rally, which was ignited by April’s US jobs data. Steve remains bullish on gold over the medium term, but sees potential for a temporary move lower. Uncertainty surrounding Wednesday’s FOMC minutes caused investors to engage in profit taking early on Tuesday morning, pushing the price of gold lower. This recent bearish momentum could also be attributed to the Hanging Man candle and Shooting Star candle, both of which recently appeared in Gold and are bearish formations according to Steve. With the potential for a move lower, Steve is planning to set shorts around USD 1220. His two targets for the trade are USD 1200 and USD 1185. A stop can be placed at 1233.
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