From the beginning of September, gold keeps on drifting lower, while trading below a short-term tentative downside resistance line taken from the high of September 4th. Although the commodity briefly moved above that line on October 24th, the price fell back below it on Monday. On the other hand, from the beginning of October, the precious metal is forming higher lows. Given the current trendless situation, we will remain neutral, observe the price action and wait for a clear break through one of our key barriers before we examine a further directional move.
If gold makes a move above the 1495 hurdle, which is yesterday’s high, this could attract more buyers into the game and the price may rise to the 1508 area, marked by Monday’s high. If the bulls are still feeling quite comfortable in their position, a break of that area might lead gold to the 1520 barrier, which is near the highest point of October.
Our oscillators, the RSI and the MACD, although they started pointing up, still need to climb a bit higher, in order for us to get slightly more comfortable with the upside. The RSI is just fractionally below 50, but is showing willingness to move higher. A similar situation is with MACD, where the indicator, although below zero still, is now above its trigger line and points north. Both indicators support our neutral stance, at least for now.
If suddenly the price falls below a short-term upside support line drawn from the low of October 11th and the 1484 support barrier, marked by yesterday’s low, this could open the door for a further move down. We will then target the 1474 hurdle, which is the low of October 11th, a break of which could send the commodity to its next possible support mark, at 1459, which is the lowest point of October.
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2019 JFD Group Ltd.