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    Today’s Trading Edge: Gold remains weak post FOMC decision

     

    WWM GOLD MAY 1 2015

    Early in NY, gold prices were down .54% to $1,176 an ounce by 8:32 AM EST. Price action on the gold daily chart shows the recent $30 slump that has been firmly in place since Wednesday’s FOMC decision.  Bearish momentum is also accelerating on the break of the 50-day SMA. 

    The chart above displays that a potential bullish Gartley pattern could emerge if price falls slowly to the $1,160 level.  If we see the current plunge immediately test that level, the pattern may be invalidated and further support may target the $1,140 region.

    If U.S. dollar strength returns strongly next week, further downward pressure on the precious metal may target the $1,090 area. To the upside, $1,190 and $1,210 will serve as key resistance levels. If price does have a daily close above, $1,210, we may see a clear path towards $1,225.

    The trade: Sell Gold at $1,176 with a stop loss at $1,184 and a take profit at $1,160. The Risk/Reward Ratio is 1: 2

    Edward J. Moya

    Senior Market Strategist

    WorldWideMarkets Online Trading

    Forex Trading Demo
     

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