The
consolidation periods may offer us some trading opportunities, depending on the
position of the price. If the range of the consolidation is wide enough, we may
trade inside the range taking advantage of the support and resistance bounces,
however such strategy is risky due to the fact that the price of the instrument
may breakout at any moment. On the daily chart of gold we can see that the
price consolidates just below its 200 day EMA at the 1304 level. The price has
been oscillating around the 1300 level and forms what it appears to be a
symmetrical triangle. To the downside, the low at the 1281 level may act as
support. To the upside, the 55 day EMA may act as resistance, followed by the
high at the 1326 level.
It is waiting for the non-farm payrolls.
ReplyDeleteThat's good to know, thanks.
ReplyDeleteGood take on markets, really insightful.
ReplyDeleteEven the fundamentals couldn't end the consolidation.
ReplyDeleteIt's still undecided.
ReplyDeleteThanks for the relevant information.
ReplyDeleteI fully agree with your analysis.
ReplyDeleteThank you for the analysis.
ReplyDelete