Gold could drop back to 2600Last week was a particularly choppy one for gold. While the 2680 target was reached and even exceeded, with a peak near the critical 2700 level, trading conditions were difficult due to sharp and unpredictable price movements in both directions.
Yesterday, the price dropped significantly, forming a clear bearish engulfing pattern on the daily chart. When combined with last week's choppy price action, this indicates we may be on the verge of a downside reversal.
My strategy is to sell during rallies, targeting 2600, with a stop loss or invalidation level above 2700.
