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Gold Technical Analysis
Gold appeared to have lost most of its safe-haven quantities. We have studied the yellow metal and concluded that it seems to benefit from moderate gains during risk appetite mode. As our expectations are for a weak US Dollar, Gold (XAU/USD) is unlikely to be an exception. We are basing our trading strategy in Gold on the market fundamentals rather than a firm technical entry, which makes this a fundamental strategy.
Gold 4hr Chart
Please click on the chart to enlarge:
Gold 4hr Chart, 28/05/15
The positive divergence may indicate a technical correction is due. a Firm break above 1,191 may affirm the bullish outlook for the precious metal. Although the nearest support level can be found at 1,184, we are choosing to layer the protective stop below 1,178. Under normal circumstances we would have opted for a smaller take profit but as we aware of the impact Greece may have on the market we are setting 100% objective of the reversal as our take profit. We would like to clarify that in most scenarios a weak US Dollar is initially expected from Greece.
Gold Trade Alert Details
Gold long at market price: 1,188.39
Take profit: 1,225.00
Protective stop: 1,174.50
Risk Ratio (RR): 1 : 2.5 (approx.)
Estimated duration: 8 days
Please note that unlike Forex this is not a tight stop.
31/05/15 UPDATE: Firm opening for Gold at the opening of the markets from the weekend break, trading at 1,193.45 at the time of this writing.
Gold 4hr Chart 31 May 2015
Please click on the chart to enlarge:
Gold 4hr chart, 31/05/15
We are closing 10% of the trade at market price to reduce our exposure ahead of China HSBC Final Manufacturing PMI.
01/06/15 UPDATE: Gold enjoyed moderate gains in today’s session following a speculation Greece will announce a deal with Europe, trading at 1,200.18 at the time of this writing.
Gold 4hr Chart
Please click on the chart to enlarge:
Gold 4hr chart, 01/06/15
We are closing 40% of the long trade at market price and shift the protective stop to the entry.
01/06/15 UPDATE: As we updated all our traders, Gold triggered the protective stop at the entry. We were able to realize 50% of the long trade with a decent profit.
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