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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
More View more
Real Time News
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here:
  • but the next major point in my view to monitor will be 52.76 - at least in the short term.
  • #Brent having broken above the pre-OPEC drop off at 45.51 is a huge deal considering it failed to crack resistance there in August (leading to the invalidation of "uptrend 2") and the psychological significance of that level
  • The New Zealand Dollar looks poised to extend its push higher against its haven-associated counterparts on robust economic data and a less dovish stance from the RBNZ. Get your $NZD market update from @DanielGMoss here:
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2020? Find out from @JohnKicklighter here:
  • The Swiss Franc may continue higher against the US Dollar as technical pressure favors USD/CHF bears..Get your $USDCHF market update from @FxWestwater here:
  • The US Dollar lost ground to most ASEAN currencies as Emerging Market assets climbed despite US economic woes. USD/INR is eyeing third-quarter Indian GDP at the end of the week. Get your market update from @ddubrovskyFX here:
  • The global stock market can be categorized into specific groups or ‘stock market sectors’. Organizing the vast number of stocks in this way helps traders to view assets in a more manageable way. Get your stock market sectors basics here:
  • The Euro looks poised to continue gaining ground against haven-associated currencies and may reverse higher against the British Pound in the near term. Get your #Euro market update from @DanielGMoss here:
  • Gold and silver prices have come under significant pressure recently. However, this correction lower could prove short-lived as price analysis hints at a reversal higher. Get your $XAUUSD market update from @DanielGMoss here:
Gold Prices Break-Higher, Bullish Channel as Next Support?

Gold Prices Break-Higher, Bullish Channel as Next Support?

2017-05-17 16:00:00
James Stanley, Strategist

Talking Points:

- Gold prices have hastened the bullish advance, posing a topside break of the bullish trend channel we looked at on Monday.

- Near-term price action in Gold prices is definitely bullish; but a longer-term bearish channel persists.

- If you’re looking for trading ideas, check out our Trading Guides. They’re free and updated for Q1, 2017. If you’re looking for ideas more short-term in nature, please check out our IG Client Sentiment.

To receive James Stanley’s Analysis directly via email, please sign up here.

In our last article, we looked at the bullish channel that had begun to build with near-term price action in Gold prices. But given the veracity of the prior move-lower, that up-ward sloping channel took on the appearance of a bear-flag that could have down-side continuation potential provided that some element of resistance showed up.

Since then, not much resistance has shown: Buyers have rampantly pushed prices beyond any potential resistance levels with a minimum of pullback, and now short-term price action has burst above the bullish trend channel as the move has recently become rather one-sided.

Gold Prices Break-Higher, Bullish Channel as Next Support?

Chart prepared by James Stanley

The swing-low from last week developed at an interesting area – around the 38.2% of the prior major move, taking the July 2016 high down to the December low. This zone is confluent with a trend-line as part of a bearish channel over the same period of time.

The momentum in this move is very similar to what was seen in the post-rate hike backdrop over the past seven months. After the Fed hiked rates in December, Gold prices went on a bullish rampage for the next two-and-a-half months. Then in early-March, that up-trend cooled as the Fed talked up the prospect of a March rate hike. But after that March rate hike, Gold prices were free to fly again, as bulls took over to push prices up to the $1,295 area. In mid-April, and hastened by the results from the first round of French elections, weakness began to show again in Gold prices until last week’s low came in. So, while near-term momentum is decidedly bullish, the intermediate-term formation here would still be bearish in nature, and this would remain as such until we either a) post a topside break out of the bearish channel or b) take out the prior swing-high at $1,295 (this would offer additional confirmation as a $1,295 print would necessitate a bullish channel break).

Gold Prices Break-Higher, Bullish Channel as Next Support?

Chart prepared by James Stanley

The counter-active nature of short and long-term setups would allow traders to utilize their USD-biases for positioning into trades. For those that do want to look for continued USD-weakness, the short-term formation should be the focus of those efforts, and traders would likely want to wait for an element of support to show so that risk levels could be properly allocated.

Gold Prices Break-Higher, Bullish Channel as Next Support?

Chart prepared by James Stanley

For bearish approaches, traders would likely want to take heed to the degree of strength that’s shown in this bullish burst-higher in Gold prices. This isn’t the type of price action that traders should want to directly fade, at least without some type of additional thesis. But resistance levels looming above current prices could open the door to reversal plays should sellers actually show up. On the chart below, we’re looking at three different areas where this could potentially play out, and these levels are all taken from prior price action. The third zone of resistance comprises an approximate $2 range from $1,276.55-$1,278.76.

Gold Prices Break-Higher, Bullish Channel as Next Support?

Chart prepared by James Stanley

--- Written by James Stanley, Strategist for

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Contact and follow James on Twitter: @JStanleyFX

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