Technicals | Nov 20 2019
Bottom Line 19/11/19
Daily Trend: Up
Weekly Trend: Down
Monthly Trend: Up
Support Levels: 1412 / 1370 / 1284
Resistance Levels: 1480 / 1544 / 1567
Technical Discussion
Reasons to be optimistic (short term weakness remains in play):
→ old resistance zone now looking to revert to support (see chart)
→ upside price action remaining robust bigger picture
→ immediate bearish head & shoulders may require slightly lower shorter term
→ geopolitical risks potentially bullish gold.
Price still hasn't quite tagged the bearish head and shoulders pattern target circa [US$/oz] 1410.00. Yet the price bars since our last review are starting to show some buyer presence. Especially with last night's session all but locking in a key outside reversal day. With the metal being bought up on the intraday dip. Last night's volume was a slight increase only, yet we will keep a close eye on it.
The old resistance zone aligned to 1375.00 – 1415.00 we are now looking to revert to support. Especially as this zone harbors our pattern target, combined with dynamic support in the form of the 200 day MA. A full blooded retest of this area of confluence has yet to occur. And is the reason why we still need to tread with some caution here.
Another aspect of the chart worth mentioning is the Type-A bullish divergence. It will likely come to the fore if price takes another swing to the downside from here. Add this in with the other supportive technical elements mentioned, then it all adds up to a significant low potentially being close to hand. Red flag only below 1375.00.
Trading Strategy
After the failing of our previous aggressive trade in Gold, we've been sitting on a more conservative pending opportunity for some time. Tonight we are going to amend that position back to aggressive and offer up a trade on the long side at 1476.00 with stops at 1442.00. It's aggressive and for experienced traders only. Yet at the same time it is a low risk opportunity. Continue to stand aside if these type of trades do not suit your risk profile.
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