This article is Part 1 of a series.
According to MarketMilk™, gold
It’s also showing bullish price momentum with its 3-month, 6-month, and yearly performances all in the green
Here’s a chart of how XAU/USD has performed over multiple timeframes:
Currently, gold’s Trend Following Rating is “Bullish
Looking at the rating’s breakdown, we can see that gold is trading above5 SMA to 200 SMA
Gold is also trading above5 EMA to 200 EMA
Gold’s short-term trend strengthbullish
As well as its long-term trend strength
Let’s take a look at gold’s daily (1D) chart
We can see that the price fell all the way down to its 200 SMA, chopped it up for a bit, but this dynamic support level was able to eventually hold.
Near-term support levels are 158015001452
Let’s zoom out a bit and take a look at gold’s weekly (1W) chart
Gold had been in a multi-year consolidation trading between 10461375
In 2019, it finally broke out!
Gold is also trading above its 20 (orange) and 50 (blue) simple moving averages. And waaay above its 200 SMA (purple).
All bullish signs.
In the near-term, I look for any price weakness to bounce off the 50 SMA (blue line)
Back in August 2008, during the Great Financial Crisis, gold prices initially fell
20%875710
With the market meltdown due to the Coronavirus Crisis, something similar could happen again.
We already saw gold fall from a recent high of 17031452rebound
Last month (Feb), gold reached a monthly high of 1689.
With March coming to an end this week, a close above Feb’s monthly high would imply further advance to the upside
Here’s my trade idea…
Long XAU/USD at 1600
Stop loss (SL) at 1540
Initial profit target (PT) at 1800
But will look to target gold’s record high at 1920
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.
Read more about this trade idea's development over time.
Pippo thinks gold will continue to rise due to growing demand by investors looking to protect themselves from inflation risk as central banks around the world start “printing” money.
Pippo went long gold (XAU/USD) and has locked in a profit of 900 pips so far. See what he plans to do next.
Pippo went long gold (XAU/USD) and decided to tighten his stop loss, locking in a profit of 7,400 pips. See why.
Pippo went long gold (XAU/USD) and decided to manually close his trade early with a profit of 8,350 pips.