Gold daily poised for potential sustained swing
The above chart shows the daily timeframe for XAUUSD. We note that price has moved into a bullish area (zone 1). The Bollinger’s have also narrowed which may suggest that volatility is due to an increase (blue rectangle). Moreover, the RSI has moved above 50 (red rectangle), which is the bullish area of the oscillator, and the stochastic has turned positive (green rectangle). We are looking to see if the Bollinger’s expand and if the stochastic moves toward 80 (blue arrow). This would indicate a momentum push. The gold CFD here may incur an overnight rollover charge [or using an FXCM AU account these may be waived], but if the stochastic is able to move to the upper quintile and hold there, it will increase the probability of a potential sustained swing.
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CHART SOURCE: FXCM Marketscope 2.0 - Past performance is not an indicator of future results.
Author
Russell Shor (MSTA, CFTe, MFTA) has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the Interna
