Forex Trading Library

Gold – Morning star formation posted as Gold corrects higher

Bullish hammer posting on Monthly chart

Trade Ideas
By Steve O'Hare
forex commodities gold
0 533

Technical

Gold – Morning star formation posted as Gold corrects higher

Monthly: A sequence of 4 monthly lower lows and highs has been posted. This month’s candle, although not yet complete looks to forming a bullish hammer after the strong reaction from the $1160 low. A close above $1200 should confirm a reversal.

Daily:  Price action has posted a morning star formation on the daily chart. This reversal pattern has been strengthened by Fridays bullish outside day and the correction has plenty of room to move higher towards the Ichimoku cloud. Further upside is expected and we prefer to set longs at current levels and on a dip towards $1203

Action: We look to buy at current levels and on a dip to $1203

Stop:  $1180

Targets: $1239 & $1262

 

UPDATE: Triggered long at 1206 (average)

Reached 1st target

 

 

Steve O'Hare

Steve has traded and analysed financial markets for over 30 years.
He started on the Baltic Exchange with Cargill Investor Services in 1987 trading Commodities. Following this Steve went on to work in a number of senior trading roles on LIFFE.
From 1995, Steve then traded his own account, specializing in European Fixed Income markets. For many years he ran his own proprietary trading company, facilitating and educating traders.
In 2012 he joined PIA-First and assisted in restructuring the company and help build it into one of the UK’s leading, award-winning independent research houses.

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