XAU/USD: Gold is overbought on February 04, 2016

February 4, 2016

The price of gold has returned to the level of 1190.00 USD per troy ounce, (which is had at the beginning of November), regaining half of the losses since mid-October 2015. On the daily chart the price has broken down strong resistance levels 1129.00 (ÅÌÀ200), 1132.00 (upper line of the upward channel) and 1135.00 (Fibonacci 61.8%).

On the weekly chart the price is rising to the upper line of the downward channel. The indicators OsMA and Stochastic recommend long positions, although the price has faced resistance at the level of 1140.00 (ÅÌÀ50).

On the four-hour chart the indicators are in the overbought zone. Nevertheless, current fundamental data puts pressure on the USD, triggering the rise in price of gold.

Sell positions are recommended if the price goes back below the level of 1129.00 (ÅÌÀ200 on the daily chart). It is advisable not to open buy positions due to overbought factor, or place short-term buy orders with the view of the lower timeframes.

Support levels: 1135.00, 1132.00, 1129.00 and 1120.001115.00.
Resistance levels: 1140.00, 1150.00 and 1155.00.

Trading tips

Sell Stop: 1138.00. Stop-Loss: 1146.00. Targets: 1135.00, 1132.00, 1129.00, 1120.00 and 1115.00.
Buy Stop: 1148.00. Stop-Loss: 1140.00. Targets: 1150.00, 1155.00 and 1171.00.

Publication source
LiteForex information  LiteForex reviews

January 19, 2017
Is equilibrium out of reach?
Let’s check what’s going on with Oil before turning our attention to the Russian Ruble. “Black gold” is forming a reversal pattern next to the key level of 52.10. The only matter is that this pattern is above the horizontal level, but the 52.10 level can potentially become the neckline of our pattern...
January 18, 2017
Trump Inauguration Market Outlook
Friday, January 20, 2017 will mark the historic inauguration of what promises to be a highly unconventional US presidential administration...
January 17, 2017
Oil spikes higher on Saudi Oil minister comments
Oil has spiked higher on Al Falih comments in Davos (Saudi oil minister). He said during a panel discussion at WEF in Davos that there will be inflation in the cost of doing business in the oil industry, following the squeeze that accompanied the decline in crude prices...

Larson&Holz IT Ltd Rating
Trade360 Rating
Vantage FX Rating
Tickmill Rating
Z.com Trade Rating
XTB Rating

OptionRally Rating
365BinaryOption Rating
Binary Brokerz Rating
Porter Finance Rating
TopOption Rating
Migesco Rating