Technical Comment: We are seeing a long-term upward trend in the gold that still holds. Currently, the price makes a second attempt to test the lower diagonal support, but also at Fibonacci level 38.2 at a price of 1276.06. For the moment, the price has been successfully holding above the trendline, with bulls trying to keep control. The price remains below 50 – the period average, which plays as resistance against upward movements, but the price is still over the 200 – period moving average.
Fundamental Commentary: Gold remains volatile in light of the trade war and frequent shifts in risk sentiment on a daily basis for risky assets. Demand for precious metal meets support in the outlined area around 1276.
Aggressive entry: Purchases at current levels.
Conservative entry: Waiting a close for the daily candle to confirm the closure over the diagonal line and 38.2 Fibonacci, then proceed to purchase.
Alternative scenario: The price penetrates the Fibo and diagonal levels and closes below them, and the likelihood of our bullish scenarios is reduced dramatically.
Stop loss: 1250.17
Trader Martin Nikolov