20/05 SHORT gold!
Fundamental analysis
On 20 May Asian session, spot gold price rose slightly, trading around 1873.
On 19 May, the minutes of the Fed’s April meeting showed that Fed officials talked about reducing bond purchases and hinted that they would start discussing quantitative easing. This news on fundamental side slammed the gold price. It fell again at a high level. In addition, stock markets, commodities and cryptocurrencies fell, US dollar index rebounded. However, the weakness of the US dollar cannot be reverse quickly, and gold may still have a great opportunity to rise. For today's trading, the number of initial jobless claims during the US market would affect the price of gold and silver.
Technical analysis
In the daily chart, gold price had a high close doji, and was fluctuated in a wide range within the day. It swept up and down for 40 US dollars. MACD upward momentum increases, RSI is still operating in the overbought zone. Any immediate price fall after its increase should be aware. In the 4-hour chart, Bollinger band has begun to narrow, and it may face directional choices in the short term. Gold price is temporarily supported by the 4-hour Bollinger band middle line. Gold price makes higher high, but MACD indicator shows a lower high. Any price falling should be aware. RSI indicator is slightly more bullish. Today, I also worry about the obvious rebound trend of the US dollar index, and the gold price is bearish.
Today’s strategy
Strategy 1: short position at 1878-80, take profit 1860, 1854, stop loss 1886
Strategy 2: long position at 1850-53, take profit 1865, stop loss 1845
On 20 May Asian session, spot gold price rose slightly, trading around 1873.
On 19 May, the minutes of the Fed’s April meeting showed that Fed officials talked about reducing bond purchases and hinted that they would start discussing quantitative easing. This news on fundamental side slammed the gold price. It fell again at a high level. In addition, stock markets, commodities and cryptocurrencies fell, US dollar index rebounded. However, the weakness of the US dollar cannot be reverse quickly, and gold may still have a great opportunity to rise. For today's trading, the number of initial jobless claims during the US market would affect the price of gold and silver.
Technical analysis
In the daily chart, gold price had a high close doji, and was fluctuated in a wide range within the day. It swept up and down for 40 US dollars. MACD upward momentum increases, RSI is still operating in the overbought zone. Any immediate price fall after its increase should be aware. In the 4-hour chart, Bollinger band has begun to narrow, and it may face directional choices in the short term. Gold price is temporarily supported by the 4-hour Bollinger band middle line. Gold price makes higher high, but MACD indicator shows a lower high. Any price falling should be aware. RSI indicator is slightly more bullish. Today, I also worry about the obvious rebound trend of the US dollar index, and the gold price is bearish.
Today’s strategy
Strategy 1: short position at 1878-80, take profit 1860, 1854, stop loss 1886
Strategy 2: long position at 1850-53, take profit 1865, stop loss 1845
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