February 7th Morning Brief
Dave Green • 2 min read
Yesterday, the market moved exactly as per our expectations for the Gold, Silver, Nikkei, and the Crude Oil. You must be excited to have more insights for the day. Let’s discuss what market updates and potential trade opportunities are in the market.
Gold is trading slightly bearish at $1232, losing -2.5 points in the early Asian trading session. But It seems as just a retracement since the investors are taking a breather before re-entering in the market. Let’s have a fundamental analysis on bullion.
The precious metal maintained a bullish momentum from 5 consecutive trading days and soared 2.4% last week. Fundamentals mostly remained the same and investors continue to take their trades based on the labor market figures.
Whereas in the absence any major economic event on Monday, the U.S. Dollar soared on Monday against the bucket of currencies and investors continued to ponder how the U.S. jobs report will influence the velocity of U.S Fed interest rate hikes in the year 2017.
Recalling the labor market figures, particularly the NFP (Nonfarm payroll) employment change and the Unemployment rate, was released from the U.S in the previous week on Friday. The U.S. economy added 227,000 jobs in the month of January from the previous month, whereas the unemployment rate edged higher to 4.8% from 4.7% in December.
Besides that, the political uncertainties around the Globe kept supporting the bullion. The focus also remained on President Trump's new policies and Brexit.
At the movement, the Gold is trading around 1232, consolidating above a major support level of $1228 and $1224. Looking at the chart, we can see a breakout in the ascending triangle pattern in the H4 timeframe. The bullishness in the previous metal is also supported by technicals, particularly the RSI that's holding above 50, and EMA's, and both the 20 & 50 periods.
Overall, the Gold is bullish, but we can expect a slight retracement in the precious metal of up to $1231 and $1229. The investors are recommended to have their buying positions above these levels, aiming for $1235, having placed their stop losses below $1227.
Silver is consolidating at $17.65, losing -0.05 points in the early Asian sessions. It's holding below a major resistance level of $17.709, and we may see some retracement below this area. The silver has formed an ascending triangle pattern in the H4 timeframe, demonstrating an excellent trading opportunity for us. Technically, the Silver is also supported, as we can see the RSI that's holding above 50, and the EMA's which are both the 20 & 50 periods.
Likewise, the silver is also trading bullish, but we can expect a slight retracement to $17.61 and $17.56. So, the investors are recommended to keep their selling positions only below $17.72, aiming for $17.61, having placed their stop losses above $17.76.
Money management is a crucial for success, Happy Trading!