Type:
Bearish Momentum
Key Levels:
Resistance: 18.96
Pivot: 18.42
Support: 17.58
Preferred Case:
On the H4, with price moving below the ichimoku cloud and in a descending trend channel, we have a bearish bias that price will drop from the pivot at 1841.4 in line with the 50% fibonacci retracement to the 1st support at 1784.9 in line with the 78.6% fibonacci projection and horizontal swing low.
Alternative Scenario:
Alternatively, price may reverse off the pivot and rise to the 1st resistance at 1878.9 at the multiple swing high in line with the 38.2% fibonacci retracement and 78.6% fibonacci projection.
Fundamentals:
With greater concerns about an impending US recession, following Chair Powell’s comments, gold price is likely to trade higher, giving us a weak bullish bias.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.