As you can see Moving Average, Uptrend, and Stochastic are moving harmoniously. This is a golden chance to take another buy support at the 2nd Hand sign estimated around 1210, but you must know the rule if you want to open a new position wait for the price to bounce from support first, otherwise you have to put stop loss just in case the price breakout and...
Nothing too complicated, just see the Bollinger Bands, everytime it touches Moving Average line is bouncing.. I wish to find this earlier.
Lesson of the year; Never get too bored to observe charts in different Time Frame and Perspective. It's like finding treasure on a treasure map!
Target is 1250 up to 1272 up to 1297 in the long run, Usually I'm being picky...
After Election since November, sentiment for US Economy is positive.
More people are spending than investing,
therefore Gold continues downtrend.
Use Stochastic to Buy when oversold and Sell when overbought, It is very applicable when downtrend is consistent throughout year end, this is a very good chance to ride the momentum!
Here is a very conservative view where possible movement of gold for this month..
Chart and marks says it all, now set some positions following the market responds toward the resistance and support lines.
After 1262 barrier has clearly been breached, it is a confirmation of breakout from hawkish trend, so next move is to 1276 as Resistance and Target...
I have to say this week MA does not work, HNS does not, Stochastic becomes rather unreliable..
One can do best is to trade 'within corridor' of hawkish trend. Using support and resistance line we can determine when to buy or to sell.. but be careful there is Bullish divergence pattern make sure to put stop loss for those who take sell position once the price hits...
Will touch 1300 before continuing the Bear until 1212.. I'm taking a more conservative approach for Target Profit at 1290 because of a slanted resistance ( gold line).
Keep an Eye on MA 20, it's the key to decide for opening a position!