Head-shoulder formation in Gold still playing out, 1,275 in focus

April 15, 2019 12:30

Source: Economic Events April 15, 2019 - Admiral Markets' Forex Calendar


The technical picture for Gold remains very interesting with an ongoing head-shoulder formation on the daily chart.

Even though Gold bulls made an attempt to push Gold back above 1,300 USD during the first half of last week, Gold closed the week below the current psychologically relevant level.

This brings us to the HS-neckline, and the important support region around 1,275/277 USD that traders are focusing on.

With the upcoming, prolonged Easter weekend, and the thin economic calendar, chances of increased volatility and a downward break seems possible but subdued, and a thinning of liquidity could result in a surprising and sharp break of 1,275 USD.

Such a downward break activates the region around 1,235/240 USD as an initial target on the downside.

The risk for Gold bulls would be negated if they succeed in reconquering 1,325 USD with a daily close.

Source: Admiral Markets MT5 with MT5-SE Add-on Gold Daily chart (between January 22, 2018, to April 12, 2019). Accessed: April 12, 2019, at 10:00pm GMT - Please note: Past performance is not a reliable indicator of future results, or future performance.

In 2014, the value of Gold fell by 1.7%, in 2015, it fell by 10.4%, in 2016, it increased by 8.1%, in 2017, it increased by 13.1%, in 2018, it fell by 1.6%, meaning that after five years, it was up by 6.4%.

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