Intraday Market Analysis: XAU/USD Tactical Strategy

[indeed-social-media sm_list=’fb,tw,pf,li,goo’ sm_template=’ism_template_3′ sm_list_align=’horizontal’ sm_display_counts=’false’ sm_display_fviull_name=’true’ sm_disable_mobile=1 ]

Gold Tactical Intraday Strategy

There appears to be a significant rush for gold following the Brexit on 23 June, 2016. It appears many traders are aware of precious metal’s safe-haven characteristics and anticipated moderate gains in the commodity. We have anticipated gold’s recovery in December 2015 but unfortunately our stops were gunned by the market in our global trade alerts.

Gold kicked higher as the UK referendum official results made it clear the UK voted to exit the European Union (EU). The commodity then pushed higher as the risk sentiment improved in the market following reports that the Bank of England (BOE) is ready to slash rates and possibly re-initiate its Quantitative Easing (QE) program. News that the European Central Bank (ECB) is considering to loosen its QE rules only fulled the rally in global equities, which was also reflected in gold (XAU/USD).

 However, gold has reached a fairly strong resistance, which leads us to believe profit taking is only a matter of time in the yellow metal.

XAU/USD Monthly Chart

Please click on the chart to enlarge:

XAU/USD 4hr Chart 03/07/16

XAU/USD 4hr Chart 03/07/16

We usually do not bring the monthly chart into the intraday strategies but is important for us to clarify the outlook for gold. Since the reversed Head-And-Shoulders (H&S) on the monthly chart XAU/USD was able to sustain its gains, breaking above the neckline (1,298.00) to reach its nearest objective (1,350.00).

1,350.00 is a fairly strong resistance level. If gold does break above the resistance on a monthly level it may pave the way towards 1,400.00 but we suspect the current levels create room for profit realization.

XAU/USD 4hr Chart

Please click on the chart to enlarge:

XAU/USD 4hr Chart 03/07/16

XAU/USD 4hr Chart 03/07/16

XAU/USD 60min Chart

Please click on the chart to enlarge:

XAU/USD 60min Chart 03/07/16

XAU/USD 60min Chart 03/07/16

We often refrain from hourly charts in our intraday strategies as we prefer the 4hr charts. We have noted the bullish flag that was affirmed in XAU/USD on an intraday level. In order to join the established uptrend on the monthly chart gold must retrace lower (possibly on profit taking) and test the lower support (upper blue line), which if holds is expected to trigger corrective gains in the commodity. We find 1,319.00 to be appropriate at the time of this writing but please note it is important to pay attention to the hourly chart if gold does retrace lower.

If gold does break below the latter support (lower blue line) it may trigger heavier selling in the commodity where 1,298.00 is seen as the immediate support.

Capitalizing over the potential profit taking at current levels is a fairly risky maneuver. Based on our experience we know we will be asked about shorting gold so we highlight the risk it involves. The resistance is seen at 1,350.00 based on the monthly chart.

If gold breaks above 1,359.00 before trading lower it will invalidate our intraday strategy for the commodity.

Intraday Market Analysis: XAU/USD Tactical Strategy

As all trades are closed this page can now be accessed by all traders. Open trades and relevant intraday strategies are restricted to members only. We have been providing trade alerts in the Forex market since May 2014.
Intraday Market Analysis: XAU/USD Tactical Strategy

MEMBERSHIP PLANS INTRADAY STRATEGIES OUR TRADE ALERTS
Intraday Market Analysis: XAU/USD Tactical Strategy

new performance pc edit 9294

Intraday Market Analysis: XAU/USD Tactical Strategy

Last Updated on August 21, 2016