Gold: Recovery from March's Low Continues As 1200 Regained After Market Holiday Trading Schedule
The daily candle chart below shows the price history of Gold over the medium term. This Contract for Difference (CFD) aims to track the underlying spot price of the precious metal Gold, and is trading near 1222.43 around time of publication today.
Last time Gold was reviewed in Ideas You Can Trade earlier in March, the lower support line of the medium term bearish channel had been reached and the trend was described as a dead-cat bounce occurring from that support line.
While the expectations in the last post was that a lower-low would follow, that never happened - and instead Gold has recovered towards current levels where it regained 1200 over the holiday weekend.
If 1200 can be maintained then support could be established here before moving higher, and the bullish trend already has good momentum so far.
If 1200 is lost then a sharp drop should follow - and would be considered a triple top after March's highs saw resistance around 1200. For now the short term trend is bullish - within the overall bearish channel.
Below are examples of how to trade a bearish continuation or a bullish reversal:
1. BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 1224.00 with a Limit to take profit @ 1255.00 and a stop-loss @ 1195.00 Risk/Reward Summary: Limit risk = 31 Profit / (-29) stop-loss risk = Gain to Loss ratio = 1.07
2. BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 1193.00 with a Limit to take profit @ 1179.00 and a stop-loss @ 11.80 Risk/Reward Summary: Limit risk = profit 14/ (-12) Stop-loss risk = Gain to Loss Ratio = 1.17
Medium Term Daily Candle Chart: