GOLD: LONG - Double bottom bullish reversal?

Long

CFDs on Gold (US$ / OZ) (TVC:GOLD)

Updated

TVC:GOLD CFDs on Gold (US$ / OZ)

TECHNICALS

1.
- Possible double bottom bullish reversal pattern forming
- Both bottoms of pattern rest on 1220 Psychological support level
- Neckline of pattern found @ 1235 resistance
- This level would need to be broken to confirm bullish reversal

2.
- Short term trend-line within double bottom pattern has been broken
- It may currently be retesting the trend-line before a bullish move

FUNDAMENTALS

- Iran/US tensions yet another geopolitical tension to add to the list that may prove bearish for USD
- If China/US trade tariffs calm down then this may provide a relief rally for gold -0.11% as this has been subduing it for some time now

STRAT

- Being extremely careful with this commodity at the moment as it is still in a long term bearish channel
- Setting a buy stop order 20 pips above the DB neckline @ 1235
- With a SL at the 1220 Psychological support

Appreciate any thoughts/comments,

Thanks for reading,

James

Comment:

- price may be forming a bullish inverted hammer on the 1h chart
- waiting for close at 10 to confirm
- wick would need to be at least 2 times as long as the candle body
- longer wick in relation to the body, the better

Comment:

- BREAKING NEWS - US and China to meet to discuss defusing the trade war THIS WEEK
- The tarrifs between the two countries has effected gold very bearish.
- These talks may provide a bullish twist for gold

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