GOLD – a possibility for long from key levels

GOLD technical analysis | Our expectations:

Possibility for long from the current levels with SL 1225.

The price is reaching levels of horizontal support (Dynamic from the DeM Sequential / green dotted Line/ and the bottom of 12.12.2017). The breakout below 50% Fibonacci on the upward movement since the beginning of 2017 has not been confirmed yet.

Investor Strategy for Gold Trading

DeM Sequential has counted till 9 as we have a stop hunting below the bar – suitable for taking long positions.

DeM (8) signaled for a likely reversal of the last downward trend after turning upwards below 40.

RSI – divergence in oversold zone – low bottom of price and flat bottom of indicator.

Alternative scenario: If the price breaks and stays below the horizontal support (a closed bar under the current support levels), we can expect a further drop in the price of the precious metal.

Chart: Used with permission of Bloomberg Finance L.P.

 Trader Nikolay Georgiev

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