DIVERGENCE in GOLD - Long Opportunity
Fundamentals - GOLD and JPY are both assets used as safe heavens and therefore are strongly correlated. Lately, there has been a strong divergence when gold dipped. This could indicate that gold is underpriced. In addition, the shadow of a trade war and Trump's comments are worrying investors who are looking at tensions combined with a really high financial market. They could increase their demand for GOLD and push prices up. Finally, institutions shorted massively GOLD to profit from its recent big drop; when they cover their short, prices will shoot up.
Technicals - MACD is about to bounce & price is about to cross the 180EMA, indicating a potential uptrend. Prices are currently consolidating around 1200-1205 (Remember the usual GOLD cycle: Drop - Consolidation - Recovery).
My first target is 1225 on a swing trade.
Technicals - MACD is about to bounce & price is about to cross the 180EMA, indicating a potential uptrend. Prices are currently consolidating around 1200-1205 (Remember the usual GOLD cycle: Drop - Consolidation - Recovery).
My first target is 1225 on a swing trade.
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