Gold Under Pressure. Is gold fooling us with a false breakdown or is there more selling to come? By Todd Horwitz, Bubba Trading.

 

Today is known as April Fools day and the big question: Is gold fooling us with a false breakdown or is there more selling to come? Based on the pattern it appears gold will test the 1280 level before we can expect any rally of substance.

Friday’s action was bearish with gold trying to breakout above 1300 again only to fall back below and fail. Once again, this morning gold is trading under 1300 headed for a test of 1280. The 1280 level is crucial for gold to hold if our expectations are for the longer-term rally to continue

As we have witnessed through March Madness and the wild finishes to may of the basketball games, we can expect the same wild trade in gold. The tops could very well be in although we still have a bullish outlook for 2019. However the pattern suggests there is some trouble now and lower levels will be tested.

Todd Horwitz
Chief Strategist
BubbaTrading.com

Financial Markets and Political Commentary
 

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About the author

Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.