Tomasz Wisniewski
Axiory Global Ltd.
Well, how about that, two weeks ago we were answering the question here : When the gold bulls will start to take profits? And we marked 1220 USD/oz as a potential place to do that (Price of the Gold back in that day was 1204 USD/oz).Quick reminder why this place and no other: first of all a 38,2% Fibonacci retracement of the main downswing and further the correction equality movement.
When we look at the chart right now we can see that it was the exact place where the price of that precious metal retraced! After that, we made a 40USD downswing and we stopped on the 1180 USD/oz (by the way, mentioned by us on our twitter account), where the demand came back on the market quite aggressively proving the high efficiency of the technical analysis.
What is our prediction for this instrument now? In the long term ( end of 2017 and beyond), we are still bullish. Mid-term situation stays positive as long as the price is above 1180 USD/oz. If this support will be broken, we should see a further downswing, hurting swing trading buyers. Is it a good time to buy now? Well, not the best one, to be honest with you. I believe that buy signal on gold is not there at the moment and will be restored once we will be able to break the 1220 USD/oz resistance or, which may happen faster, we will defend 1180 USD/oz for the second/third time creating a double bottom/iH&S formation.
Trading FX/CFDs on margin bears a high level of risk, and may not be suitable for all investors. Before deciding to trade FX/CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. You can sustain significant loss.
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