Gold Technical Analysis, September 15, 2020

Exclusive Markets Analysts
Exclusive Markets Analysts


Technical Outlook:

Gold had print life time highs in August 2020 at $2075, and since then it has been drifting sideways. The yellow metal had dropped sharply to $1862 mark right after hitting highs. If a meaningful top is in place, it needs to break below $1862 to confirm.

Gold has been in a corrective phase at a larger degree since $1920 highs in 2011. The metal might be unfolding as an expanded flat corrective wave. It is called a traders’ nightmare, since price actions pushes beyond extremes within an expanded flat.

Gold had earlier dropped through $1046 lows in December 2015, potential Wave (A) of the expanded flat. The subsequent rally towards $2075 might be potential Wave (B). If the above is correct, the yellow metal could be preparing for a turn lower towards $1046 over the long run as Wave (C) unfolds.

Another possibility is that Gold is still carving Wave (B) and is consolidating within a triangle, before producing a thrust rally above $2075. If the above unfolds, we could see a bullish break from here, pushing prices towards $21000 or higher before reversing.

We remain neutral at the moment and allow price action to confirm the next major move. Bears would remain in control if Gold breaks below $1862 levels. At the moment, Gold might be facing resistance around $1965/70 levels and turn lower again.

A push through $2000 would threaten $2075 highs in the next few trading sessions. Aggressive traders might remain short with protective stop at $2088.

Trading Strategy:

Aggressive traders remain short against $2088, target is open.

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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