GOLD. December 10th. The trading system. "Regression Channels". The gold retains high chances of growth - ConsultFX

GOLD. December 10th. The trading system. "Regression Channels". The gold retains high chances of growth

4-hour timeframe


Technical details:

The senior linear regression channel: direction - up.

The younger linear regression channel: direction - up.

Moving average (20; smoothed) - up.

CCI: 102.4024

The tool "gold" on Monday, December 10, began a downward correction, unable to overcome the Murray level of "8/8" - 1250.00. The blue bars of the Heikin Ashi indicator eloquently signal movement towards the moving average line. In general, an uptrend on the instrument remains, that is, gold is becoming more expensive. In principle, this is not surprising, given the fact that traders in recent months really need a safe asset, if not for long-term investment, then at least for short-term operations. The demand for eurocurrency and pound sterling is now extremely low. However, the US dollar is not in high demand. First, the US currency is already overbought. Secondly, there are signs of a slowdown in the US economy. Thirdly, next year, the world may witness a change in the Fed's course on tightening monetary policy. To this can be added the focus of both channels of linear regression to the top, as well as the moving average line. We get that all the fundamental and technical factors on the side of gold. Thus, while the instrument is above the MA, the chances of continuing the upward movement remain very high.

Nearest support levels:

S1 - 1246.09

S2 - 1242.19

S3 - 1238.28

Nearest resistance levels:

R1 - 1250.00

R2 - 1253.91

R3 - 1257.81

Trading recommendations:

The currency pair GBP / USD began to be adjusted. Thus, it is recommended to wait for the completion of the current correction, which will be indicated by the Heikin Ashi indicator turning to the top, and to open new long positions with targets at 1250.00 and 1253.91.

Sell orders are recommended to be considered only after the price is fixed below the moving average line. In this case, the trend in the instrument will change to descending with the first goals of 1230.47 and 1226.56.

In addition to the technical picture, you should also consider the fundamental data and the time of their release.

Explanations for illustrations:

The senior linear regression channel is the blue lines of the unidirectional movement.

The junior linear channel is the purple lines of the unidirectional movement.

CCI is the blue line in the indicator regression window.

The moving average (20; smoothed) is the blue line on the price chart.

Murray levels - multi-colored horizontal stripes.

Heikin Ashi is an indicator that colors bars in blue or purple.

The material has been provided by InstaForex Company -