Posts Tagged ‘gold analysis’

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Gold is going down?

May 7, 2012

http://newonforex.com/

Yesterday people traded Gold in the range 1630-1640 and it seems going down. However it almost reached the significant support at 1623.53 and there it is very possible to start uptrend movement until the 50 period EMA at 1662 . IF it beats the support line at 1623.53 it seems that it will strongly go down(Be careful for a bull trap). We expect similar situation if it goes to the 50 period EMA. Look for reversing/breaking bars/candles at the 1-4 hours charts they should be the signals.

Trading Idea: Look at the hourly chart(be careful on lower period the signal will be weaker) and if the price breaks the support at 1.623.53 sell 50 pips below the breaking bar’s minimum. Of course insure your capital with a stop loss 50 pips above the breaking bar’s maximum.

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