Gold price fluctuates, pay attention to vital support 1216
Fundamental analysis: Last week, due to risk aversion mood by investors and Trump criticised on FED's policy, gold price rose up that broke through the descending trend line since April 12th. Since DXY has already entered its descending tunnel and gold price needs more stimulates in order to rise even higher, I would expect the gold price to be fluctuating in the range between 1216 and 1226.
Technical analysis: Technically gold price has some demand to retreat from the big rise on last Thursday. As we can tell by setting up Fibonacci Retracement that 1216 (23.6%) is a strong support, and I expect 1226 (0.00%) will be a strong upper resistance. Therefore, there are three trading strategies we can think of:
1. Wait until the price reach the previous highest at 1226. If break through, we may take a long position to 1238.
2. If the resistance proves to be strong, aggressive traders may take a short position to around 1216.
3. If the vital support at 1216 does not hold, short position is suitable and we can expect to take profit at 1206.
Technical analysis: Technically gold price has some demand to retreat from the big rise on last Thursday. As we can tell by setting up Fibonacci Retracement that 1216 (23.6%) is a strong support, and I expect 1226 (0.00%) will be a strong upper resistance. Therefore, there are three trading strategies we can think of:
1. Wait until the price reach the previous highest at 1226. If break through, we may take a long position to 1238.
2. If the resistance proves to be strong, aggressive traders may take a short position to around 1216.
3. If the vital support at 1216 does not hold, short position is suitable and we can expect to take profit at 1206.