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By: Ahura Chalki
Short and long term trading with COVID-19!
As we starting a new week, “the number of reported new cases of coronavirus in China’s Hubei province rose on Monday after two days of falls, as authorities imposed tough new restrictions on movement to prevent the spread of the disease which has now killed more than 1,700 people” (Reuters). For the week ahead and next days, trading strategies will be different from long term traders. As a day trader, still, coronavirus headlines matter, while for longer-term traders, central banks reaction and policies will much more important since we know finally we will beat the virus, no matter how, and then it is important to know what policymakers and central bank’s policies will be to compensate the damages caused by COVID-19.
For now, Asian stock exchanges started with different reactions. Nikkei 225 is losing by more than %0.80, while Hang Seng and Shanghai rising by %0.46 and %1.50, which is not the favor of Gold price and can push that lower.
For today, as the US and Canadian markets are closed, and focus will be on the Asian and European news and data.
Gold Technical analysis:
In the H1, H4 and Daily charts, price moves strongly above the OBV trend line, supporting the bulls, while we can see the same signal from BB, as candles are between middle and upper bands of BB. The lower band of BB at $1552 is still key support and trading above this level, still keeps the Gold on the positive mood, while breathing the $1589 (Upper band of BB), can confirm $1600 area.
Pivot point: 1581.72
Resistance level: 1590.40 / 1593.60
Support level: 1578.52 / 1569.85
Today, the expected trading range is between 1578.52 support and 1593.60 resistance.
Risk Warning: Trading-Leveraged Products such as Forex and Derivatives may not be suitable for all investors as they carry a high degree of risk to your capital. Please ensure that you fully understand the risks involved, taking into account your investment objectives and level of experience, before trading, and if necessary, seek independent advice.