Gold : Fundamental Factors
1) Flash Services PMI is expected to be at 46.5 compared to 46.2
2) Flash Manufacturing PMI is expected to be at 47.7 which is the same as previous month.
3) Yellow metal had caught some bids earlier this week on signs of easing U.S. inflationary pressures, it swiftly reversed this trend after the Fed warned that U.S. interest rates will likely peak at higher-than-expected levels. This was followed by the European Central Bank also signaling that it will continue raising rates, with headline inflation continuing to trend above the bank’s target range.
4) Rising COVID-19 infections in major importer China added another degree of uncertainty to markets already reeling from worsening growth prospects.
Trend is Bearish
Fundamental Range : 1,775.68-1,778.76 ( Range is lower than yesterday range)
(Important info : It will cross this range somehow, the range can be higher or lower also)
Gold : Technical Analysis
Check at Daily Timeframe Support and Resistance for Fibonacci.
Check based on the current timing for the Support and Resistance when you want to go into trade.
Resistance Area : 1800.09,1808.84,1823.01
Support Area : 1771.75, 1763.00, 1748.83
Pivot point : 1785.92
Confirm with technical indicators and based on your own technical analysis for the trend.
Check investing.com to get more info on what most indicator would display
Check higher timeframe also for more confirmation for entry in Daily timeframe.
The technical indicator display strong buy in Daily and strong buy in weekly and buy in monthly timeframe.
Use linear regression to get confirmation trend at daily as they are not available in investing.com
Linear regression shows a neutral but slight downtrend at the daily timeframe .Can check linear regression trend in weekly and monthly for more confirmation.For weekly, it is downtrend and for monthly,it is showing uptrend.
Use Bolinger Band Strategy Tester and RSI Strategy Tester to get more confirmation for the trend and percent profitable.Check at bigger timeframe also such as weekly and monthly.
Ensure that both RSI strategy and Bolinger Band Strategy gives above 50%. for the percent profitable
RSI strategy tester and Bolinger Band Strategy Tester at the daily and weekly has percentage higher than 50% , supporting towards neutral or slight downtrend compare to the other timeframe such as Monthly.
Find sell at the daily chart by using the first resistance ,1800.09 and take profit will be at the pivot point , 1785.92 (SEE CURRENT MARKET PRICE)
See current market and find the nearest support point for entry and take profit at the pivot point.
Gold : Fundamental and Technical analysis must be aligned
For further information, contact me ,Gurmit at +60142584067, I will guide anyone who wants to register with Weltrade. You can register at the link below. Thank you.
DISCLAIMER :This analysis is based on Investing.com and Forexfactory.com. You may follow based on your own discreetion.
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