News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • 🇷🇺 Markit Manufacturing PMI (NOV) Actual: 46.3 Previous: 46.9 https://www.dailyfx.com/economic-calendar#2020-12-01
  • Gold prices appear to have fallen to oversold territory and may look for a technical rebound. An immediate support level can be found at US$ 1,750. https://t.co/kpHCe2aLth
  • Heads Up:🇷🇺 Markit Manufacturing PMI (NOV) due at 06:00 GMT (15min) Previous: 46.9 https://www.dailyfx.com/economic-calendar#2020-12-01
  • I mentioned before, but so far, the average seasonality for the $SPX is aligning to 2020's top months (April then November). This - along with record highs - will likely feed expectations for December: https://www.dailyfx.com/forex/video/daily_news_report/2020/12/01/Dow-and-Dollar-Enter-December-with-Technical-Breaks-and-Temptation-.html https://t.co/5uICTgtHoA
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 94.17%, while traders in NZD/USD are at opposite extremes with 73.77%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/HUeuen6CZW
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.33% 🇳🇿NZD: 0.32% 🇨🇦CAD: 0.31% 🇪🇺EUR: 0.26% 🇨🇭CHF: 0.20% 🇯🇵JPY: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/haJtgLdWR1
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: US 500: 0.86% Wall Street: 0.81% Germany 30: 0.50% FTSE 100: 0.13% France 40: 0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/X0IBWDdCcR
  • 🇮🇳 Markit Manufacturing PMI (NOV) Actual: 56.3 Expected: 57.3 Previous: 58.9 https://www.dailyfx.com/economic-calendar#2020-12-01
  • Learn why dividend stocks are favored by investors and why it might be the right choice for you here:https://t.co/VUsJFHBARb https://t.co/bv5Eu2Pnsp
  • Heads Up:🇮🇳 Markit Manufacturing PMI (NOV) due at 05:00 GMT (15min) Expected: 57.3 Previous: 58.9 https://www.dailyfx.com/economic-calendar#2020-12-01
Gold Forms a Triangle After a 20% Decline

Gold Forms a Triangle After a 20% Decline

2011-10-11 17:18:00
Walker England, Trading Instructor,
Share:

Gold (XAU/USD) continues to be out of favor due to its 20% decline from its $1920 high on September 10th to its September 28th low at $1532. Currently price is residing at resistance for our current down trend at $1680. At this critical point, gold will find itself either breaking to higher highs, or continuing its present descent to lower lows.

Fundamentally, Gold still remains the safe haven asset of choice. As the economic climate around the world slows many traders, investors and others are still parking their money in the metal. If world governments fail to decide on a plan of stimulus action and markets continue to decline Gold will likely be a direct benefactor. Likewise if there is light at the end of the tunnel, and an economic recovery on the way, it may signal a next leg down for Gold.

GOLD_Forms_Triangle_After_20_Percent_Decline_body_Picture_1.png, Gold Forms a Triangle After a 20% Decline

Taking Price in to a 4Hour chart we can see our well defined support and resistance lines of our triangle. Resistance is currently found over the October 10th high of $1682.61. Support is found under $1653.00 by connecting our rising lows ascending up to present price action. One method of trading triangles includes placing entry orders waiting for a breakout. This allows traders to cover both ends of the market regardless of direction.

GOLD_Forms_Triangle_After_20_Percent_Decline_body_Picture_2.png, Gold Forms a Triangle After a 20% Decline

My preference is to bracket Gold (XAU/USD) utilizing entry orders. Entry’s to buy should be placed over 1,700 with the option to sell under 1, 6400. Limits should look for a minimum of $125.00. Stops should be set limiting $62.50 in risk for a 1:2 Risk/Reward Ratio.

Alternative scenarios include price continuing to consolidate prior to a break.

Additional Resources

How to Trade Triangles

Identifying the Trend

Pivot Points

---Written by Walker England, Trading Instructor

To contact Walker England please email Instructor@DailyFX.Com. You can follow James on Twitter @WEnglandFX.

To be added to Walkers’ distribution list, please send an email with the subject line “Notification,” to instructor@dailyfx.com.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES