Gold
The precious metal for about 3 trading weeks was trading
within the range of resistance $1290 and support $1266.62 per ounce. Political uncertainty
in the US as a result of passage of the Tax bill in the Senate, North Korea
tension (refusal to negotiate) contributed to the sharp decline in Dollar in
the last trading day of the week 17th November, 2018.
The sharp decline in Dollar index saw Gold sharply rallied
past resistance $1290 to reach a high of $1296.49 testing critical resistance.
The precious metal ended the trading day slightly below the critical resistance
$1296.49 to close at $1293.77.
Looking at the weekly chart below, Gold is currently trading
within 61.8% and 50% Fibonacci retracement levels of high $1357.29 and low
$1204.65
On a lower timeframe using 1hr chart, we see a throwback in
the trend as price as retrace to test the moving averages fast and slow while
the RSI 14 hour period also retraced from the overbought level to currently
trade at 62 (still in the bullish zone)
Sentiment
Gold remain bullish with a more valid confirmation when
price closes above $1296 critical resistance on the daily candle. A daily close
above $1296 would likely see the precious metal rally towards $1305 resistance
on the other hand; a rally below $1290 would see the Gold trend back into a
range with $1266 as key support
Recommendation:
Long with stoploss at $1275 and Take Profit 1 @ 1305 (next
resistance) and $1322 (intermediate resistance)
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