XAU/USD: gold is trading sideways
10 June 2020, 10:40
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | BUY STOP |
| Entry Point | 1747.0 |
| Take Profit | 1770.0 |
| Stop Loss | 1740.0 |
| Key Levels | 1627.0, 1678.0, 1747.0, 1770.0 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 1678.0 |
| Take Profit | 1627.0 |
| Stop Loss | 1700.0 |
| Key Levels | 1627.0, 1678.0, 1747.0, 1770.0 |
Current trend
Gold quotes are consolidating at $1,717 per ounce.
This week, the precious metals market is stable with a moderate decline. According to the Commodity Futures Trading Commission (CFTC), the number of open net speculative positions in the instrument decreased to 219.0K from 251.8K in the previous period.
Data on the volume of China's imports for May, which reflected a decline to –16.7% compared to the forecast of –9.7%, provoked depreciation. The continuation of the downward trend can be caused by today's negative Chinese statistics on the consumer price index for May, which fell to –0.8% against the forecast of –0.5%, and the producer price index, which amounted to –3.7% instead of –3.3% expected.
Support and resistance
The development of a moderate sideways channel continues, and the price is trading in the middle of the range. Technical indicators have already reversed and issued a sell signal: fast EMA of the Alligator indicator crossed the signal one downwards, and the histogram of the AO oscillator moved to the sales zone. Further dynamics are seen inside the channel with a possible global increase.
Resistance levels: 1747.0, 1770.0.
Support levels: 1678.0, 1627.0.
Trading tips
After growth or consolidation above local resistance at 1747.0, buy positions with the target at 1770.0 will be relevant. Stop loss is 1740.0.
After a reversal and decline or consolidation below the support level at 1678.0, it is important to open sell positions with the target at 1627.0. Stop loss is 1700.0.
Implementation period: 5 days or more.
Gold quotes are consolidating at $1,717 per ounce.
This week, the precious metals market is stable with a moderate decline. According to the Commodity Futures Trading Commission (CFTC), the number of open net speculative positions in the instrument decreased to 219.0K from 251.8K in the previous period.
Data on the volume of China's imports for May, which reflected a decline to –16.7% compared to the forecast of –9.7%, provoked depreciation. The continuation of the downward trend can be caused by today's negative Chinese statistics on the consumer price index for May, which fell to –0.8% against the forecast of –0.5%, and the producer price index, which amounted to –3.7% instead of –3.3% expected.
Support and resistance
The development of a moderate sideways channel continues, and the price is trading in the middle of the range. Technical indicators have already reversed and issued a sell signal: fast EMA of the Alligator indicator crossed the signal one downwards, and the histogram of the AO oscillator moved to the sales zone. Further dynamics are seen inside the channel with a possible global increase.
Resistance levels: 1747.0, 1770.0.
Support levels: 1678.0, 1627.0.
Trading tips
After growth or consolidation above local resistance at 1747.0, buy positions with the target at 1770.0 will be relevant. Stop loss is 1740.0.
After a reversal and decline or consolidation below the support level at 1678.0, it is important to open sell positions with the target at 1627.0. Stop loss is 1700.0.
Implementation period: 5 days or more.
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