Gold - market update after todays market shakeout - how to trade
Technical view
-Market price is at several moving average resistance, close above 50 day moving average (yellow line) implements up movement
-MACD baselines turned bullish and move up to cross the 0 line, this would implement further market price up movement
-RSI is still not heavy over bought which implements more space to move up for market price
Fundamental view
today, the price of gold has risen above 1%. At the same time, global equities and commodity markets have fallen rapidly for the most part. Oil at its peak up to 7% price loss in one day. From a technical chart point of view I expected this but few expected such a strong downturn in the oil price. Often the stock exchanges and markets indicate impending crises and I believe that a small impulse has started today. It remains to be seen in the coming weeks whether global equities and commodity markets will continue to weaken and gold will continue to rise in return. This would again confirm the reputation as crisis protection, the development of the crypto currency market also remains interesting during a small to medium "financial crisis" which we could well face due to skillful businessmen like Donald Trump. Another factor of uncertainty for the EU remains the Brexit and Italy, which continues to weaken in economic view.
How to trade
scenario 1 - green line --> Should the market price close several times above 100 day moving average (1283 $ area) and enter in a sideways phase, we are waiting for a double bottom as a new entry signal. A strong upward movement can be expected from there.
scenario 2 - red line --> should the market price close below 100 day moving average I expect a correction to 1279 $, there is then the new long entry
-Market price is at several moving average resistance, close above 50 day moving average (yellow line) implements up movement
-MACD baselines turned bullish and move up to cross the 0 line, this would implement further market price up movement
-RSI is still not heavy over bought which implements more space to move up for market price
Fundamental view
today, the price of gold has risen above 1%. At the same time, global equities and commodity markets have fallen rapidly for the most part. Oil at its peak up to 7% price loss in one day. From a technical chart point of view I expected this but few expected such a strong downturn in the oil price. Often the stock exchanges and markets indicate impending crises and I believe that a small impulse has started today. It remains to be seen in the coming weeks whether global equities and commodity markets will continue to weaken and gold will continue to rise in return. This would again confirm the reputation as crisis protection, the development of the crypto currency market also remains interesting during a small to medium "financial crisis" which we could well face due to skillful businessmen like Donald Trump. Another factor of uncertainty for the EU remains the Brexit and Italy, which continues to weaken in economic view.
How to trade
scenario 1 - green line --> Should the market price close several times above 100 day moving average (1283 $ area) and enter in a sideways phase, we are waiting for a double bottom as a new entry signal. A strong upward movement can be expected from there.
scenario 2 - red line --> should the market price close below 100 day moving average I expect a correction to 1279 $, there is then the new long entry
Trade stängt: målet nått
The analyses provided are for informational purposes only and do not constitute financial advice or recommendations to buy or sell anything. The information presented is based on personal research and interpretation.
