Published On: Tue, Feb 28th, 2017

Targeting a move higher in Gold

InstaForex

Short term

/

Buy

Trade view / 11 minutes ago

Director / PIA First

United Kingdom

Instrument:XAUUSD

Price target:1278

Market price:1251

Background


Gold prices pushed above the $ 1,260/oz level in early US trading on Monday, also breaking above the 200-day moving average with a peak at $ 1,264/oz as USDJPY came under pressure. A dollar recovery and move higher in US yields was important in curbing support for gold later in New York with a decline back to $ 1,252/oz. 

The retracement offers an opportunity to set longs as we continue to target the $ 1,278-80/oz area before a possible attempt on the psychological $ 1,300/oz.

The AB=CD corrective formation targets $ 1,278/oz and with a 61.8% fibonacci retracement at $ 1,284/oz, where we expect some resistance here.

The recent break above the $ 1,245/oz resistance has led to prices accelerating quickly higher and this area will now turn into support on a pull-back lower.

Parameters

Entry: Buy XAUUSD at current levels and on a dip to $ 1,245/oz

Stop: A break below $ 1,230

Target: $ 1,278 & $ 1,300

Time horizon: 1 week

Charts:

4 hour chart showing current bullish channel

Source: Saxo Bank

Daily chart highlighting AB=CD target and Fibonacci retracement

Source: Saxo Bank

Weekly chart showing long term resistance at $ 1300

Source: Saxo Bank

— Edited by Clemens Bomsdorf

Non-independent investment research disclaimer applies. Read more
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