Gold analysis – 6 March 2020

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By: Ahura Chalki

New fresh 7 years high with the support of scary virus!

Increasing the infected and death numbers in the US, while new countries, like India, joined the club. Wall Street’s S&P 500 plunged 3.39%, Dow 3.58% and Nasdaq 3.10$, while the dollar index, which measures the greenback against six currencies, slipped 0.5%, to help yellow metal toward another attempt at the $1,700 target, which it missed by less than $10 last month.

Fears of negative effects of COVID-19 on the biggest economy, send the investors, looking after safe havens. There is no more reason for that and as long as we have this situation, hard to believe bears can get market control.

For today, the US employment data will be in the spotlight, lower than expected can send the price higher, above $1700, while positive data, can limit the bulls.

Gold technical analysis:

As I mentioned in yesterday’s analysis, the Bollinger band’s lines were so tight, signaling of bigger jump come, which ended with new fresh high. In the H1 chart now, what we can see is that technical indicators, still supporting the bulls, however, the market volume is getting lower, which can slow down the faster movement, as we saw a day before.

Pivot point: 1663.30

Resistance levels: 1691.83 / 1703.13

Support levels: 1652.00 / 1623.50

Today, the expected trading range is between 1652.00 support and 1703.13 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.

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