Week 39: Gold trading plan

Disclaimer: All information shared is solely for learning purpose and it does not constitute to a buy/sell call.

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FOMC Summary:

  1. Full employment is needed before Fed would think of adjusting interest rates higher
  2. Fed is ok for inflation to be above 2% for sometime as long as long term inflation remained at 2% (basis latest projections, inflation would not be higher than 2% by 2023).
  3. Fed would minimally continue its current 80Bn + 40Bn buying program (in case siutation worsen, they are not ruling out to increase it)
  4. Affirmation that Fed is committed to use FULL wide range of tools to keep the economy going.


Gold trading plan:

Weekly Chart:
As mentioned last week, the probability for a strong Bull run for gold have been uncertain and we have seen large volatility happened last week due to FOMC.
Now that most if not all the news which could affect Gold (until before US elections) are out, we should keep a look out for the bullishness of gold to be back due to fundamentals.
In the weekly chart, we have seen that Gold has closed the week green where a high of 1,973 is being tested and that level would likely to be tested next week in case the resistance could be converted into new support.
The support at 1,900 range remained very critical in the upcoming week as this would determine the long term support of Gold.
Daily chart: 
On the daily chart, we have also seen a high low and higher high in the immediate term forming where Gold has formed a support at 1,930 area as mentioned last week. This support is still holding well.
MACD and RSI are both showing continued signs of recovery where a crossover break up pattern may happen next week. Once the crossover break up pattern is confirmed, we would see Gold moving back upwards hopefully to retest the all time high.
4hours chart:
Gold is currently at Wave 3.1.4 and it would be likely to complete the 3.1.4 (downwave) and move upwards by Monday morning/noon time. Post 3.1.5 (upwave), Gold would be moving to 3.2 (small downwave) before going back up again.
As such, do remind yourselves not to fomo and enter high. In trading, it would be important to enter low and sell high and not enter high to sell higher.
I have added the Elliott wave pattern for learning. Hope it helps! Do like & share the post if it benefits you.

As no trading/investments are guarantee sure win, please do your own due diligence and always look at risk to reward and trade with guaranteed stop loss (private message me to know more).

Past article written on how to use guaranteed stop loss; do private message me in Telegram for me to refer you to IG.


Ernest Koh

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