Fibonacci Support In View For Gold
If the "risk on" sentiment toward stocks continues, a long trade may set up from a key Fibonacci support level in August gold futures.
Since the early stages of Friday’s session, August gold futures have consistently fallen to the bear. Prices are off almost $20 per ounce as safe-haven appeal has suddenly eroded. However, the daily bullish trend remains valid and the recent weakness may bring an opportunity to go long from Fibonacci support.
During the U.S. early market hours, the JOLTS Job Openings for April were released to the public. The figure came in better than expected, but down slightly month-over-month. On the heels of last week’s disappointing NFP report, today’s JOLTS numbers are reassuring investors that all is not lost for the U.S. economy.
Fibonacci Support In View For August Gold Futures
It seems as though the commodities markets are currently at the mercy of big-round-numbers. For August GOLD futures, the zone between $1350.0 to $1325.0 is shaping up to be a short-term value area.
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Here are the key levels to watch in August gold for the remainder of the week:
- Resistance(1): Psychological Level, $1350.0
- Support(1): 38% Fibonacci Retracement, $1324.6
Bottom Line: At the moment (11:15 AM EST), it appears as though risk is back on toward U.S. equities. If this sentiment continues, we will likely get a chance to go long from the Current Wave 38% Fibonacci Retracement (1324.6).
As long as the Swing High of 1352.7 remains valid, I will have buy orders in queue from 1325.6. With an initial stop loss at 1321.4, this trade produces 40 ticks on a slightly sub-1:1 risk vs reward management plan.
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