Gold continues to show resilience taking into account the positive Non-Farms last Friday and now better than expected US Retail Sales and Jobless Claims. Yes there has been some selling off the back of these numbers but there is also clearly steady demand preventing the bears from dominating the market. As I mentioned yesterday there a various opposing forces impacting gold at present including the forthcoming withdrawal of stimulus and global growth concerns which is bearish whilst at the same time the uncertainty surrounding global growth is supporting gold at these levels.
Technically gold is the same as yesterday, and that is range bound with any trends ending rather quickly. Therefore traders who cannot wait until we have a breakout out of the triangle pattern shown on the daily chart yesterday can look for intra-day opportunities buying at support and selling at resistance levels. The 15 minute chart shows recent support and resistance levels that may provide a bounce opportunity to profit. Look to sell around the yellow resistance and buy around green support. It is paramount to assess whether there is any change in fundamentals or news headlines that is driving or dropping price before executing and try to incorporate bearish candlesticks to confirm the reversal.
This may mean you miss out on a couple dollars of extra profit but the confirmation is worthwhile forfeiting the extra profit. It is recommended not to use this strategy during economic releases so be aware of the US Producer Price Index at 13:30 GMT and Consumer Sentiment 14:55 GMT
No comments:
Post a Comment