Gold trading – $1300 danger of entering a bearish trend

Gold Trading Danger of entering a bearish trend.

Gold trading, this market is in a precarious position as buyers haven’t been able to break the 1365 resistance and have now fallen back to support close to the $1300 range.

Price action is favoring the sellers and the 200 MA (200 day moving average) is the support. Technical traders are watching this for a break down and a continuation of the longer term bearish move.

We are watching for any type of capitulation at this level to signal a reversal.

Dollar index effect on gold trading.

 The dollar index is on resistance, the buyers have had about a 5% move up on relatively high volume showing buying strength.  This could be giving us a bull flag which means the break of resistance could get us a move up to .95 which would further push gold down.

If the dollar retraces to 90 gold will have a temporary lifting in prices, any where under 90 and we will be looking for gold to return to previous highs.

With the politics of N. Korea de-escalating we could see gold loose some of its footing here.  Syria is out of the news cycle right now, and unless we have more air strikes, I doubt there will be any catastrophe influence.  We shall see.  Gold trading volume could fall.

Trading gold is very volatile and risk management is the key.  There are many other instruments that reflect gold prices without the exposure of leverage.  Always manage your risk first and if you are not familiar with trading then don’t ever believe what you read, you must be able to manage your risk and protect your capital before you trade.

We will be having a three day trading course in Edmonton.  If you would like to join the Edmonton day trading course May 26 -28, 2018 you can find more information here.