Over the past 30 days we can see
clearly the direction of major funds to increase their holdings of gold, which
did not retreat during that period from its peak close to the 1345 little until
now, despite the Italian government announced its intention to sell Italian
gold to cover the budget deficit
The reason why the Italian
government's emotional comments on gold prices may not have been influenced by
traders is that Russia, for example, is waiting for any commercial quantities
available for purchase, while China does not hide its desire to increase its
holdings of gold while it is clear that even from within the European continent
Clear to buy gold even against the euro, which reached the price of gold
against the euro to the prospects of the 1190 before retreating slightly
towards the 1160, which we do not trust as an appropriate level either to buy
or sell
However, despite the recent
declines in gold against the dollar, we can not even look at it as the end of
the gold trend against the dollar. Gold retreats towards the 1320 areas are not
enough to make sure that the trend towards buying gold is over. To gold during
the last period, which means that there are fears of the bursting of the index
bubble and US stocks, which may also hit European indices and stocks
Of course, we are facing a unique
situation in the US economy: a president who wants a weak dollar, strong
indicators and less gold holdings in the face of a federal bank trying to raise
interest rates and a democratic bloc that rejects all the economic trends of
the president and investigations that may affect the president himself after
many members of his team or employees With him
In America, we have a president
who might lose his job (a possibility that remains theoretically possible) and
a federal bank is going against the economic vision of the president. A
democratic bloc is doing its best to thwart anything that belongs to the
president
Are frightening elements for stock
traders and indicators who recognize that Trump has turned himself from the
beginning of his presidency to a "drive forward" for US indices and
bonds and considers their rise to be an achievement and therefore the threat to
the president has become a direct threat to those indicators and stocks
In Europe it is not so clear, but
it is also complex and open to all possibilities, starting with the French
yellow jackets that may haunt the French president, the rude Italian
government, the long and boring British exit and not the end of the Spanish
troubles
All of these factors are a support
for gold, but in light of all this, we can not abandon technical standards when
we go to buy gold
Trading Recommendation
On the 4 H chart we find that gold
has strong support at 1322 while the strongest resistance is 1340 and between
the two regions can move gold up and down influenced by news or statement or
even depending on the deals of small traders and their tampering with markets
But if we look at the RSI we find
that it is currently negatively inclined while gold kept trading above the
50-day average, but it can concede at any time, which could push it quickly
towards support areas 1322 which will represent a fragile line of defense and
break it will have an impact Myself may push gold to retreat towards 1295
Therefore, we do not prefer to get
involved in the markets at present not to sell and buy before the vision
becomes clearer, but for traders with small targets they can trade and until
further notice as follows
Put outstanding orders for sale
from 1345 levels with a profit at 1335
Put pending orders to buy from
1322 levels with a profit at 1330
For traders with great targets,
there is nothing tempting to enter the gold market now and we will follow the
movements of gold throughout the week before we decide how to deal with it
during the next week
My recommendations and
analysis can be tracked through
My official website
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