Hello Traders,
We now find gold at a true crossroads between what could be the beginning of a new bull market in the commodity or the beginning of a new leg back down to 1100.
There are multiple uses for gold as a hedge for various reasons so I'll veer away from attempting to use any of them as an explanation and stick to the purest form of analysis which is price.
The previous two months gold consolidated within a tight trading range as the Moving Averages on a Monthly chart began to bang their heads together with the potential of a bullish crossover between the 10 EMA and the 50 MA.
Also notice that we did make a higher low during trading looking back 1 year. This is just something to keep in mind as price shows bias to the bulls.
Since the consolidation mentioned gold made a bullish break above 1261 with the current month's trading attempting to close as close as possible to the descending resistance level drawn on the chart.
At the moment, I hold no position in gold as the risk/reward is unfavorable in terms of my trading plan. I will be monitoring for a break above the descending resistance level on the daily / weekly chart to enter any bullish positions.
On the contrary, if you are looking for short positions do monitor for a Daily candle close below the 10 EMA for aggressive short term holding short positions with the Daily candle 50 MA as a trade target and/or management point.
I hope you find the analysis helpful.
Cheers. =)
Gold D1 Chart:
We now find gold at a true crossroads between what could be the beginning of a new bull market in the commodity or the beginning of a new leg back down to 1100.
There are multiple uses for gold as a hedge for various reasons so I'll veer away from attempting to use any of them as an explanation and stick to the purest form of analysis which is price.
The previous two months gold consolidated within a tight trading range as the Moving Averages on a Monthly chart began to bang their heads together with the potential of a bullish crossover between the 10 EMA and the 50 MA.
Also notice that we did make a higher low during trading looking back 1 year. This is just something to keep in mind as price shows bias to the bulls.
Since the consolidation mentioned gold made a bullish break above 1261 with the current month's trading attempting to close as close as possible to the descending resistance level drawn on the chart.
At the moment, I hold no position in gold as the risk/reward is unfavorable in terms of my trading plan. I will be monitoring for a break above the descending resistance level on the daily / weekly chart to enter any bullish positions.
On the contrary, if you are looking for short positions do monitor for a Daily candle close below the 10 EMA for aggressive short term holding short positions with the Daily candle 50 MA as a trade target and/or management point.
I hope you find the analysis helpful.
Cheers. =)
Gold D1 Chart:
Comment:
Monthly Bar rejected the downtrend resistance. Bias still weighted towards shorts. I am short.