WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

Today’s Trading Edge: Gold – Tentatively respects 100-day SMA

Posted by Edward Moya on Feb 27, 2015 4:32:00 AM

WWM GOLD FEB 27 2015

Yesterday, gold prices rallied on solid physical demand from Chinese investors who just returned from celebrating the Lunar New Year holiday.  After hitting a session high of $1,219.90 and tentatively respecting the 100-day SMA, gold prices have settled closer towards the $1,205 region.  

The gold daily chart above shows that yesterday's rally, which was the biggest gain we've seen in a few weeks, also found resistance from the 23.6% Fibonacci retracement level of the $1307.80 high to $1,190 low move.  

Gold prices may remain vulnerable if continued strong data comes out from the U.S. and expectations grow for the Federal Reserve to raise interest rates sooner than later.  Currently we may see a consolidation period for gold prices between the $1,180 support level and $1,230 resistance zone.  

If we do see prices for the yellow metal rise to the 200-day SMA, which is currently trading around $1,248 level, we may look to enter a longer-term bearish bet.  

The Trade: Buy gold at $1,205, with a stop loss at $1,193, and a take profit at $1,230.  The risk/reward ratio is 1:2

Edward J. Moya

Senior Market Strategist

WorldwideMarkets Online Trading  

Topics: gold, technical anlaysis, Federal Reserve monetary policy, Metals


Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

Browse our frequently asked questions and find your answers right away.

Access to the educational lessons, webinars and platform walkthroughs.


Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!