For Traders

Analytical Reviews

Technical analysis

19.07.201916:39 Forex Analysis & Reviews: Gold 07.19.2019 - Fake breakout of the 20-day high

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Trading recommendation:

Gold tried to sustain the break above the 20day high at $1.440 but I saw the rejection, which is the sign that Gold may back into the previous well defined trading range and also test support levels at $1.415-$1.401.

Blue horizontal line – 20day high Resistance $1.440

Red rectangle- Support 1 ($1.415)

Red rectangle – Support 2 ($1.401)

Fake breakout of the 20day high at $1.440 in combination with the bearish divergence and overbought condition on the Stochastic oscillator are very good indications of the potential downside. Also, Gold did test the upper Bollinger band and found sellers, which adds more weakness in the futures on the Gold. My advice is to watch for selling opportunities and potential testing of $1.415 and $1.401.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.