Gold: Ending Near Last December's Levels as Bearish Pressure Winning
The daily candle chart below shows the price history of Gold over the medium term. This Contract for Difference (CFD) aims to track the underlying spot price of Gold, and is trading near 1186.55 around time of publication today.
Earlier this month in the last post about Gold in Ideas You Can Trade, the precious metal moved sharply nearly 50 points in a single day as the 1200 level was briefly regained. Since then the bearish theme that has ensued most of the year caused prices to move lower yet again, and Gold appears poised to end 2014 near lasts december's levels.
A triangle pattern is nearing completion, drawing the recent upper resistance line of the lasts few trading days with the support line drawn from the November 7th year-to-date low. If that support line fails Gold should drop whereas a break above the upper resistance line could cause a brief bullish continuation. An additional chart below shows the longer term trends for comparison.
Important Notice regarding holiday trading hours from WWM: Ideas You Can Trade will resume on January 2nd, please check the following link for the holiday hours during the market trading schedule or visit WorldWideMarkets.com.Below are examples of how to trade a bearish continuation or a bullish reversal:
1. BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 1193.00 with a Limit to take profit @ 1214.00 and a stop-loss @ 1175.00 Risk/Reward Summary: Limit risk = +21.00 Profit / (-18.00) stop-loss risk = Gain to Loss ratio = 1.16
2. BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 1176.00 with a Limit to take profit @ 1160.00 and a stop-loss @ 1191.00 Risk/Reward Summary: Limit risk = profit +16.00/ (-15.00) Stop-loss risk = Gain to Loss Ratio = 1.06
Medium Term Daily Candle Chart Zoomed in:
Medium Term Daily Candle Chart zoomed-out: