Should We Buy Gold at the 50 SMA? - Forex News by FX Leaders
Sellers are hesitating already now

Should We Buy Gold at the 50 SMA?

Posted Tuesday, July 7, 2020 by
Skerdian Meta • 1 min read

GOLD has been bullish throughout this year, with the sentiment in financial markets being negative, turning traders to safe havens. As a result, Gold has climbed more than $350. During the second half of May, we saw a consolidation amid the uncertainty, but the uptrend resumed again in June.

The price moved above moving averages on the H4 time-frame chart and reached $1,778, making new highs in the first day of this month. But, we saw a pullback down back then, which ended at the 50 SMA (yellow). That moving average was pierced a couple of times, but the candlesticks didn’t close below it, so there was no break.

That was the second time the 50 SMA provided support in recent months, after doing so at the end of June. So, this moving average has been acting as support for Gold. Today we are seeing another pullback lower, after the four doji/hammer candlesticks, which are reversing signals. But, sellers are already having second thoughts now, so it seems like the 50 SMA is acting as a support again. Should we buy Gold from here? If we get a bullish reversing candlestick, then we might open a bus forex signal here.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
USD/CAD retraced higher today, but the retrace ended at the 50 hourly SMA
38 mins ago
Comments

Leave a Reply

avatar
  Subscribe  
Notify of