Commodity
by Seth Parker on October 3, 2018

Gold Analysis – Shift on the precious metals market?

In this piece, we need to update the situation on Gold as yesterday, the price made a significant turn. Previously, we talked about the XAU on the 28th of September and we were bearish, as the price was breaking the lower line of the correction:

“We can see that the bearish momentum is quite high and the breakout looks legitimate. Sell signal will be cancelled when the price will come back above the red line but that is less probable at the moment. „

In our analysis, we always try to show you a good entry point but in the same time, a place where you should exit the position. That is a useful thing especially in this case. Gold reversed, broke the line mentioned above and came back inside of this formation. That creates us a false breakout, which should result in a further rise.

gold chart

Situation here is very interesting. USD is much stronger worldwide but it does not affect the precious metals, which in theory should go down. It may indicate that there is a shift on the market and that the precious metals are entering the bullish trend. Buying now is not the best idea though. We are below the green resistance. Only the price losing above that line will be a proper signal to buy.

By Seth Parker

Seth is a professional trader with over 10 years of experience. He specializes in the technical analysis. His main focus is on the pure Price Action. In his trading, Seth used the trends, supports and resistances and technical formations. Always, the most important thing in his strategy is the money management. Seth reached a proficiency in trading and for the past three years is doing that for a living enjoying the sun and lovely beaches of the Spanish coast.

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