Just a Health Pullback in Gold?

3 set

Gold
Technicals - (December - Z)

Gold futures came under slight pressure in the overnight session, with weakness in outside metals, strength in the Dollar, and an uptick in two-year treasury yields also contributing. Futures continue to maintain their upward trajectory, with 'dip buyers' still active in the markets. Futures will need to preserve the August 22 low of 2506.4 and the psychological 2500 in order to keep momentum traders in the markets. Any close below 2484.9 will open the door for a further correction.



Gold (Dec)—Daily stochastics correct from overbought territories, indicating traders maybe unwinding some of their bullish bets. DMI - turned above DMI + , indicating the market is cautious. The average true range (ATR) is 35.2 per day.



For Trend Traders

Bias: Bullish/Neutral

Bull Trade Trigger: 2504

Bull Trade Trigger Date: August 12

Trend Reversal Point: 2484.9



Resistance: 2566.2**, 2583.7**, 2601***

Pivot: 2506.4*** (August 22 Lows)

Support: 2500 (Psychological)***, 2484.9 (Trend Reversal Point)***

2467.7 (50 DMA)***, 2400 (Psychological)***


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Disclaimers:
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*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.

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