We saw a positive Gold last week, closing up +0.50%, as investors were risk-off in U.S. and European equities at the weeks close. Gold saw a -2.40% decline during the week on positive Trade War news, but that was not enough to provide the confidence to continue to stay risk on.
On the daily chart, Gold’s movement has changed to a Bull Flag Pattern giving us a higher outlook on the market, targeting 1.075 first. Last Tuesday Gold printed a new lower low before rallying for the following 2 days. We saw a consolidated going almost nowhere; opening at $1504.88 and closing $1504.73, only a -0.01% move on Friday as well. We are expecting some risk on movement this week on top of positive Trade War news. However, markets continue risk on beware of the potential of the pattern continuing before completing.
THE PLAY: We are looking to sell the Gold when price breaks and closes below $1490’s region to take profits at $ 1460s to $1470’s region (depending on how impulsive the move is.
On the daily chart, Gold’s movement has changed to a Bull Flag Pattern giving us a higher outlook on the market, targeting 1.075 first. Last Tuesday Gold printed a new lower low before rallying for the following 2 days. We saw a consolidated going almost nowhere; opening at $1504.88 and closing $1504.73, only a -0.01% move on Friday as well. We are expecting some risk on movement this week on top of positive Trade War news. However, markets continue risk on beware of the potential of the pattern continuing before completing.
THE PLAY: We are looking to sell the Gold when price breaks and closes below $1490’s region to take profits at $ 1460s to $1470’s region (depending on how impulsive the move is.