Gold stabilised on Friday, finding support at 1570 and resistance at 1587 in quiet trading to form a "doji" candlestick on the daily chart. This morning, gold has seen some buying support enter the market and has moved up to currently trade around 1590.
The market remains extremely oversold, with the RSI at levels not seen in the past 5 years on the daily and weekly charts. With the decline in gold halting on Thursday and stabilising on Friday above 1550, the potential for a recovery rally increases with every hour that gold remains above support at 1550.
The oil price is also stabilising after huge declines last week and the dollar has also stopped rallying, giving some much needed respite to gold.
Today's video looks at the trading action of last week in more detail, outlines our strategy for our next trade and looks at potential targets for a recovery rally.
The market remains extremely oversold, with the RSI at levels not seen in the past 5 years on the daily and weekly charts. With the decline in gold halting on Thursday and stabilising on Friday above 1550, the potential for a recovery rally increases with every hour that gold remains above support at 1550.
The oil price is also stabilising after huge declines last week and the dollar has also stopped rallying, giving some much needed respite to gold.
Today's video looks at the trading action of last week in more detail, outlines our strategy for our next trade and looks at potential targets for a recovery rally.