CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

GOLD - 09/01/2020

Micro Analysis

09 January, 2020

For General Information only. Not Intended to Provide Trading or Investment Advice. Your Capital is at Risk.

TREND: DOWN

Technical Outlook

From a technical perspective, Gold looks set to extend its downward correction as the Weekly Chart below points to an RSI Divergence Pattern. RSI Divergence forms when the price goes up and forms higher highs, and at the same time RSI (Relative Strength Index) goes down and forms lower highs. This pattern forms at the top of the bull markets (uptrends), and is known as a strong reversal pattern, and usually the price changes its direction and goes down when RSI Divergence forms.

If Gold succumbs to this pattern, and moreover, if gold remains below its Pivot of 1550.00, we can expect Gold to extend its declines down to Support 1 of 1510.00 and Support 2 of 1475.00 in extension.

If, however, the RSI Divergence pattern proves wrong and instead the Gold price moves up higher to reach new highs, we can then expect Gold to target Resistance 1 of 1589.00 and Resistance 2 of 1620.00 in extension.


Graph: (Gold, Weekly)

Pivot Point:

1550.00

Resistance 3:

1650.00

Resistance 2:

1620.00

Resistance 1:

1589.00

Support 1:

1510.00

Support 2:

1475.00

Support 3:

1445.00

Example of calculation based on weekly direction for 1.00 Lot*

GOLD*

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

-10,000.00

-7,000.00

-3,900.00

4,000.00

7,500.00

10,500.00

Profit or loss in €***

-8,996.04

-6,297.23

-3,508.46

3,598.42

6,747.03

9,445.84

Profit or loss in £***

-7,641.17

-5,348.82

-2,980.06

3,056.47

5,730.88

8,023.23

* 1.00 lot is equivalent of 100 units
*** Calculations for exchange rate used as of 9:20 am (GMT) 09/01/2020
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account Manager regarding their use.
**** Please, consider closing your position in profit, even if it is lower than suggested one
***** Trailing stop technique can protect profit – Ask your Senior Account Manager for more details

Share It With Your Network
GOLD Chart
Update Time: -
Highest
Lowest
1M 5M H D W
Prices are loading..
Ready for trading?Start Now
Close

Be aware of the following holiday trading schedule:

  • Martin Luther king US holidays 20.1.2020
Instrument 20.01.2020 21.01.2020
ALL FOREX Regular Regular
Indices
S&P 500 Early close 17:59 Regular
NASDAQ 100 Early close 17:59 Regular
DJ 30 Early close 17:59 Regular
Russell 2000 Early close 17:59 Regular
DOLLAR INDEX Early close 17:59 Regular
Energy
Crude oil Early close 17:59 Regular
Brent Oil Regular Regular
Natural Gas Early close 17:59 Regular
Heating oil Early close 17:59 Regular
Gasoline Early close 17:59 Regular
Commodities
Corn closed Regular
Soybeans closed Regular
Wheat closed Regular
Sugar closed Regular
Cotton closed Regular
Metals
Gold Early close 17:59 Regular
Silver Early close 17:59 Regular
Copper Early close 17:59 Regular
Palladium Early close 17:59 Regular
Platinum Early close 17:59 Regular
Bonds US
Bonds Early close 17:59 Regular
Equities
Equities US closed Regular
  • Please note: In case of low liquidity in a specific instrument, Fortrade may widen the spreads or even close the instrument for trading. Notifications will be issued regarding any such changes to the trading schedule.
  • 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
  • The above times may be subject to change.
  • All times are GMT (0)