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Gold Creates This Bull Signal Ahead Of NFP

By Fawad RazaqzadaCommoditiesMay 08, 2020 07:44
uk.investing.com/analysis/gold-creates-this-bull-signal-ahead-of-nfp-200441485
Gold Creates This Bull Signal Ahead Of NFP
By Fawad Razaqzada   |  May 08, 2020 07:44
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Thanks to record low rates and QE, not to mention increased haven demand, gold has managed to retain most of its recent gains. And now it may have formed a key technical signal that it wants to break new 2020 highs.

Take a look at this daily chart of gold:

Gold Daily Chart
Gold Daily Chart

On Thursday, gold may have ended its recent consolidation phase as the market decided that it wants to go higher. The metal broke above the bear trend of the consolidation formation, creating in the process a large daily bullish engulfing candle.

The engulfing candle more than made up the losses from the day before, thus ending the short term bearish bias.

It is important that gold now holds above Wednesday’s high of ~$1708, which is the first key level of support now. If it doesn’t then the bulls may be in a spot of bother and would be in real trouble should gold go on to break below Thursday’s low at ~$1682.

But if gold does hold the breakout then the bulls may target the liquidity above the recent high of $1747/8 next, with the 127.2% Fibo at ~$1772 being the subsequent target.

The key risk is Friday’s US jobs report. In the event that the non-farm job losses are not as bad as indicated by the ADP (NASDAQ:ADP) and jobless claims data that we have seen in recent weeks, then that could help to support the dollar and undermine gold. But I doubt this would be the case.

Gold Creates This Bull Signal Ahead Of NFP
 

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Gold Creates This Bull Signal Ahead Of NFP

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Comments (3)
abdulkader parekh
abdulkader parekh May 10, 2020 10:39
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looks bullish according to my analysis too
mohd hishammudin md safiee
mohd hishammudin md safiee May 10, 2020 2:52
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Monday gap up?
Limae Dollarz
Limae Dollarz May 08, 2020 10:25
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so the gold graph will tend higher!?..
Daniel Sanchez
Daniel Sanchez May 08, 2020 10:25
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Could be visiting 1770 area, ill just tell you. It doesnt stop me making money. Non farm data today could send it up very quickly.
mohd hishammudin md safiee
mohd hishammudin md safiee May 08, 2020 10:25
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So monday gold up to 1770?...
 
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Disclaimer: Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warrant that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness, nor does the author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
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