GOLD – SELL – 18th March 2020

GOLD – SELL – 18th March 2020 (Closed)

Good afternoon Forex Kings,

 

We have a number of orders ready to be activated, however we are now looking to go straight into the market.

Golds bull run looks as though it has come to an end (for the time being). Investors will be taking profits from the large run to help support equity positions.

During the GFC GOLD dropped roughly $800 as investors and companies were in a SELL everything mode.

We are now looking to capitalise on that as we feel financial markets have plenty more room on the downside, especially as more countries go into quarantine.

If you take away the corona-virus, fundamentals do not look good. Banks are in big trouble as liquidity is extremely low (Deutsche bank in particular).

Currently there is MASS money printing going on behind closed doors in an attempt to stabilise financial markets.

If Crude Oil stays below $30 for a while, US shale producers will shut up shop and close down.

Banks are already squeezed with extremely low interest rates, they are now being squeezed due to their exposure to the energy market.

Banks are now worries about loan defaults from energy companies that can not afford to produce oil. Therefore banks will need to sell gold to support their own financial position.

Technical Analysis

GOLD 4 hour charts

There has been a 5 wave structure from the start of the bull run. We have now seen a break of the trend line followed by a retest of the previous support level. The 1549 handle is also inline with the previous shoulder level. There could now be an A-B-C structure lower.

 

Trade Setup: SELL GOLD – Market order (currently 1532.04) – Stop loss set at 1562.04 and take profit targets are 1447-1429.

Stop loss: 300 PIPS

Take Profit: 850 PIPS

 

Trade Setup
SELL

Entry
1532.04

Take Profit
1447.00

Stop Loss
1562.04