Gold Market Daily – Bears calling the shots


Written on 09/06/2020 by Theunis Kruger, FX Trainer at FXTM

Gold on the D1 time-frame was in an extended uptrend until May the 18th when a higher top was recorded at 1765.08. Supply pressure increased after that level and the market started moving lower.

After the higher top at 1765.08, the market made a lower top. In the process, the price broke through the 15 and 34 Simple Moving Averages with the Momentum Oscillator crossing into negative terrain as it pierced through the zero baseline. The fact that the market made a lower top and then proceeded to go below the previous bottom has initiated a first impulse wave of a possible new downtrend from a structural point of view.

A critical support level might have started forming on June the 5th at 1670.55, as buyers seemed to be trying to push gold higher.

If the gold price breaks through the critical support level at 1670.55, then three possible price targets may be calculated from there. Applying the Fibonacci tool to the bottom of the support level at 1670.55 and dragging it to the previous lower top and resistance level at 1745.08, the following targets may be considered.

The first target can be projected at 1624.49 (161 %). The second price target may be predicted at 1549.96 (261.8%) and the third and final target may be expected at 1429.37 (423.6%).

If the resistance level at 1745.08 is broken, the scenario above is annulled and appropriate action must be taken.

As long as sellers maintain a negative sentiment and supply keeps overwhelming demand, the outlook for the gold market on the Daily time-frame will remain bearish.

For more information, please visit: FXTM               

Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% 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.


Latest news

China’s New Central Bank Digital Currency Dishes Out More Pain to The Dollar
The US dollar’s role as the world’s base currency is facing a new threat that could dramatically impact the broader financial markets. Read more
Russell 200 Index – US Jobs Report Could Signal a Good Week for Equity Markets
The positive US jobs report might have lit a fuse under equity markets, the Russell 2000 index in particular. Read more

Forex Fraud Certified Brokers

Oanda Small Logo
IC Markets Logo
City Index Logo
BlackBull Markets Small Logo
skilling logo
Exness Small Logo Logo
LegacyFX Small Logo
OctaFX Logo
XM Logo
Plus500 Small Logo
IQ Option Logo