Oil is at an interesting level at the charts indicating, perhaps, some demand starting to come in.
Possible Demand Zone for Gold?
The 1180 to 1185 level may look interesting to buyers:
- There is previous demand at around this level – buyers have come in at this level in the recent past and bought the market strongly
- Gold broke the highs from October 2014 (although we are trading under this level presently)
- Sellers broke the lows and made new lows at the end of October but buyers bought the market at that point.
- We are making a series of higher lows on the daily chart
- There is the potential for some trend line retests at the 1180 area
Its a mixed fundamental bag for the shiny metal at the moment:
- Gold demand has dropped to its lowest level in four years – an falling demand from China
- Russia is buying gold in large quantities
- India could announce a reduction in the import tax on gold this month – this may boost the demand for the metal.
Remember, the markets can go either way! Successful investing is anticipating the anticipation of others.
You can play the gold market, risk free with SparkProfit
The AUDUSD pair has been in a downward channel since it broke down through support in early September last year. Since then, the bears have been firmly in control. So, taking the philosophy of not trying to pick the bottom (that’s just plain rude) and going with the trend, lets examine the chart to see if it gives us any clue as to some likely levels where supply could kick in again.
Where could the sellers come back in?
There are two levels on interest here:
- the nearest possible supply zone at 0.7875
- We have had previous support made at the 23rd of January
- A solid break followed by long bearish candles indicating strong supply there
- We’ve tested the level again and bears have come in defending
- The lows at 0.7720 from the 29th of January look like they had their stop orders run and the buyers picked up some orders there
- We have had a number of touches at the supply level, the supply could be weak now
- A break of this level would shake out the early shorts and weak hands
- the next possible supply zone is at 0.8020. This looks like a better place to make a stand
- We have had previous support – old lows become new highs
- We have a price retesting forming a hook structure and strong bearish candles following the retest on the 28th of January.
- Its near the 61.8 fib from the highs of the year.
- Its near the top of the channel
- Its a significant round number
We have a couple of news items this week which may give us the volatility to get back to the 80.
- Tuesday 9th February 12.30 am GMT- National Australia Bank Business Confidence
- Thursday 11 February 12.30 am GMT – Employment Change & Unemployment Rate from the Australian Bureau of Statistics
- Thursday 11 February 10.30 pm GMT – RBA Governor Stevens speaks
Remember though, markets will do their best to confound the majority. Keep it tight!
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What’s Been So Awesome About Our First Year.
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