Tariffs and trade war are the key factors afoot in world markets following last week's central bank-driven volatility. Emerging markets find themselves in the crosshairs with economies linked to Chinese exports hardest hit.
Day trade
Trade view / 07 June 2016 at 7:06 GMT

Gold to reverse lower as rally stalls

Director / PIA-First Limited
United Kingdom
Instrument: XAUUSD
Price target:
Market price:

Our medium-term bias remains positive although pullbacks are likely. The rally was sold and the dip bought yesterday resulted in little net change. 

Although the bulls are in control, the stalling positive momentum indicates a turnaround is possible. The bearish engulfing candles on the hourly chart is negative for short-term sentiment and a lower correction is expected to challenge Friday's Marabuzo level. 

We prefer to sell a break of current support, which will confirm bearish sentiment.  
Management and risk description

Once the trade is triggered and first target is reached, move stop to entry on balances looking for second target.


Entry: sell XAUUSD on a break of $1,240/oz

Stop: a break above $1,250/oz.

Target: $1,225/oz & $1,200/oz

Time horizon: 1-3 days.

Gold movements
 Source: Saxo Bank

Five-year chart

 Source: Saxo Bank

— Edited by Martin O'Rourke

Non-independent investment research disclaimer applies. Read more
Steve O'Hare - First 4 Trading Steve O'Hare - First 4 Trading
This trade idea has been triggered
Alejo76 Alejo76
another mistake....
ZacharyC ZacharyC
Im in to commit. lets see how it goes.
Steve O'Hare - First 4 Trading Steve O'Hare - First 4 Trading
This trade has been stopped this morning
ZacharyC ZacharyC
yeah, mine hit the sl. Win some lose some.
Steve O'Hare - First 4 Trading Steve O'Hare - First 4 Trading
Agreed. Our daily model has initiated longs this morning on a break of 1250 targeting 1258 then 1270 with a stop at 1244


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