Gold Report 12th April
As anticipated yesterday gold had a retracement although just missed the $1570 target by $1. There is much conflicting data at present which is causing gold to be rather volatile therefore exercise disciplined risk management. Last night US Weekly Jobless Claims gave additional testament that the job market is on firm ground and the dollar is still showing strength over the yen as optimism ripples through the Japanese markets attributed to the BoJ new aggressive policy stance. These factors are putting downward pressure on gold however on the contrary the intensifying situation in North Korea is offering support for gold as investors shift some cash to the safe havens.
Today we are likely to see very little movement before tonight’s US Retail Sales and Consumer Sentiment and also the US Bank earnings are kicking-off tonight with JP Morgan and Wells Fargo. The constriction of the Bollinger bands on this 15 minute chart manifest the indecision in the market today ahead of the headline news due before the US open tonight. A symmetrical triangle has also formed showing how the market is in a state of two minds. Scalping may be the most suitable type of trade before the US open so use Bollinger bands on a 1 and 5 minute chart to trade the day’s range of $1558 to $1562.5.
Even the 4 hour chart is now displaying some indecision and a corresponding symmetrical triangle on a larger scale. Entering a buy position right now is a dangerous play given the overriding bearish trend and fundamentals weighing in on the bear side too. Therefore exercise patience if considering a position trade of 48+ hours and wait for price to approach the upper line of this triangle which is incidentally the overriding bearish trend line.
No comments:
Post a Comment