Gold Technical Analysis, July 14, 2020

Exclusive Markets Analysts
Exclusive Markets Analysts


Technical Outlook:

Gold is seen to be trading below $1800 mark as we prepare to publish today’s update and a slip below $1795, would trigger price action for further sell off towards $1750/60 initial support. A break below $1750 would be the first step for a potential trend reversal.

Looking at the larger degree wave counts presented on the weekly chart, Gold might be indicating the following. The metal had topped in 2011 around $1920 levels, and reversed lower. The drop unfolded into clear 5 waves, and terminated around $1046 in December 2015.

A 5 wave movement in any direction indicated the following: Either a new trend has resumed or it is the first wave of a corrective phase (3 waves). Either way, Gold was due in for a corrective rally before turning lower again.

The corrective rally unfolded into 3 waves, A-B-C on the chart here. Please note the fibonacci extensions for the termination of Wave C were around $1798/99. Gold has managed to reach up to $1818 levels over the last week and it remains possible that the metal might have topped.

With respect to the wave structure, we need to see a break below $1750/60 at least, to confirm a potential bearish reversal. On the weekly chart, a break below $1670 support would confirm a bearish reversal. Either way, please note that upside remains limited from here.

Gold remains critical at this juncture and also vulnerable for a potential bearish reversal ahead. A break below $1750/60, confirms.


Trading Strategy:

We remain flat for now. Looking to sell again.


Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.

Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.

Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.

Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.

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