Gold: Technical outlook and review.

17. Dez. 2015

The yellow metal initially reacted bearishly to the Fed’s decision to raise interest rates yesterday, but, as you can see, quickly bounced back from H4 demand at 1058.0-1062.4, with the high for the day (1078.2) just missing the H4 Quasimodo resistance level at 1078.9. To our way of seeing things right now, Gold is considered range bound between the two above said areas. Trading (with confirmation) this current H4 consolidation is certainly valid today, with a short from the upper boundary being the better trade to take in our opinion, due to it converging nicely with a daily swap (resistance) level at 1071.2. To be on the safe side here though guys, even with confirmation from the lower timeframes here, we’d still place our stop above the H4 trendline taken from the high 1098.0 lurking just above to avoid any fakeout that may take place.

With regards to the lower boundary of this H4 range: 1058.0-1062.4, this is still an area we’ll be looking at today. However, one should take into consideration that the top-side of weekly demand sits directly below it at 1054.8. This – coupled with the H4 Quasimodo support at 1052.6 has ‘fakeout’ written all over it! As a result, traders should also keep an eye on this region for potential (confirmed) buys today.

Levels to watch/ live orders:

• Buys: 1058.0-1062.4 Tentative – confirmation required (Stop loss: dependent on where one confirms this area). 1054.8/1052.6 Tentative – confirmation required (Stop loss: dependent on where one confirms this area).
• Sells: 1078.9 Tentative – confirmation required (Stop loss: dependent on where one confirms this level).