Commodity Forecast /GOLD/ Our Expectations
Long-term upward trend, ever higher lows and higher highs. The price has reached diagonal and horizontal support, 200SMA and Fibonacci 38.2%. Technical Indicator: Dem(14) rotates from Over Sell Area - Positive for Price and Signal for New Ascending Impulse. The two unsuccessful attempts to break the support zone around $1267 from 06.10 and 27.10 indicate that bears have no power to drag the price down. Price Action: we have an absorbing bullish bar - positive for the price.
Fundamental: Although the situation around North Korea is currently calm, the inability of hedging instruments such as GOLD to drop significantly suggests that investors are unwilling to target all their assets to risky assets. On the other hand, record world indices did not negatively affect gold, and this is another proof that metal has found the new local bottom in the upward trend. Fear of investors, albeit limited, is still on the market that supports the metal.
SL: 1253.11
Alternative Scenario: If the price goes below the support zone and stays there in several consecutive bars, we can see a new bearish impulse and the positive scenario will be dropped.
Jr Trader Petar Milanov
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.