Trading the Trend: Short Gold

This week’s Trading the Trend is to go short gold on a bounce to $1,689 per troy ounce with a stop loss at $1,736 and a target at $1,610 which gives a 1:1.68 risk/reward ratio. It follows last week’s long Dax 40 trade on the hourly chart which could have led to a 259 point profit but was stopped out at break even because the upside target hadn’t been reached.