I would update the blog with possible reversal about to happen in Gold spot futures which will atleast target 1510 area and only support around 1760 needs to be breached & I would put stops around 1776 area.
I would like to change my idea after seeing such a strong rally in Gold future which has never been witness. This might go to strongest in recent decades, specially after U.S struggling with economy we can see the Dollar sell off continues amid strong stimulus packages issued by U.S government which will surely put lot of pressure on U.S dollar in coming months & It won’t stop here & I’m eyeing something really big & We can some strongest packages coming out in a couple of months time.
So far Rally has been so strong that I have changed my decision to look for more strength with the correction rather than reversal. I would advice you all to stay away from shorting Gold at the moment and possible look to buy on dips for a rally towards atleast $2250. If this correction continues to be deep, then probably we will have strong support around $1750 & from there we can look for possible buy for a stop around $1690. First, we need to see strength of the correction and secondly we must see the Support and resistance holding or giving away when this rally continues to be strong or stalled around areas.
Chart & idea will take sometime, but I’m pretty sure that rally has stalled for next few weeks. I’ve seen so many reversals after strong NFP release & one of the strongest reversals in Gold future happens in 2011 when it topped out around and price was around $1886 when strong NFP numbers surprise the market, but this situation is never ever faced by anyone like the Pandemic and other fears after pandemic, so wait and watch the Price Action unfolds and we will soon see some good areas to buy Gold and get a piece of pie..