Advertisement
New Zealand markets closed
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NZD/USD

    0.5974
    -0.0031 (-0.52%)
     
  • NZD/EUR

    0.5535
    -0.0008 (-0.14%)
     
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • OIL

    83.05
    +1.70 (+2.09%)
     
  • GOLD

    2,240.70
    +28.00 (+1.27%)
     
  • NASDAQ

    18,254.69
    -26.15 (-0.14%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,807.37
    +47.29 (+0.12%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • NZD/JPY

    90.3880
    -0.3920 (-0.43%)
     

Gold Price: Running into Resistance - Big Picture Down-Trend Intact

DailyFX.com -

To receive James Stanley’s Analysis directly via email, please sign up here.

Talking Points:

  • Gold Technical Strategy: Flat

  • Gold is continuing to trade higher after a vigorous bounce off of trend-line support.

  • Short-sellers could find entries attractive provided price remains below the prior ‘lower-high’ at $1,147.83.

In Wednesday’s piece, we looked at the vigorous bounce that Gold put in off trend-line support, connecting the higher-lows that had established in the market since a low was established in July. And after three consecutive days of higher prices combined with aggressive price action, those looking to sell the yellow metal may be nearing a potential entry point. As noted in Wednesday’s piece, the pace with which Gold has moved higher should not be underestimated by potential short-sellers. Resistance has begun to come in off of the $1,140 level, but until more certain resistance shows an attractive risk-reward ratio may not be present.

ADVERTISEMENT

For short-sellers, targets at $1,125 (psychological support level), $1,110 (projected trend-line support), and then $1,100 (psychological level and the last ‘higher-low’ before Gold shot higher) could prove attractive. Prior price action resistance at $1,147.50 could provide anchoring of stops on potential short positions.

Alternatively, should Gold continue trading higher to eventually break the previous lower-high at $1,147.83; traders can look to the long side of the market with targets set at $1,155.47 (61.8% Fibonacci retracement of the ‘secondary move,’ taking the low from 2008 to the highs of 2011), $1,170 (psychological level and prior price action resistance), $1,200 and then $1,250 (both psychological levels that have had a tendency to provide support/resistance in Gold).

Gold Price: Running into Resistance - Big Picture Down-Trend Intact
Gold Price: Running into Resistance - Big Picture Down-Trend Intact

--- Written by James Stanley, Analyst for DailyFX.com

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Contact and follow James on Twitter: @JStanleyFX


original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.