For those asking, "Is gold a buy or sell?", this structured shorting plan focuses on the Micro Gold Futures (MGC) contract. This approach leverages selling the bounce at resistance levels while managing risk and securing incremental profits. With the MGC contract, each 0.1-point move is worth $1 per contract, making it a flexible choice for traders managing smaller positions.
Gold futures price at the time of writing
The logic behind this approach is rooted in an analysis of the volume profile and past VWAP levels, particularly from December 10 and December 11, where we see a cluster of such key levels. Additionally, the $2,700 round number adds psychological significance to these levels. By casting a net of sell orders at strategic points, we aim to scale into the position effectively.
This shorting strategy for micro gold futures (MGC) leans toward selling gold, with a clear plan for entering, exiting, and managing risk. By focusing on resistance levels, partial profit-taking, and disciplined stops, traders can confidently answer, "Is gold a buy or sell?" with actionable insights.
This strategy serves as an orientation and should be adjusted to fit each trader's needs and personality. For example, if the short gold trade begins moving in their favor, some traders may choose to adjust their stop loss, moving it to the entry price to reduce risk.