Analysis for Gold 05.01.2020 - Oversold condiiton together with rejection of support at $1.670. Watch for buying opportutniies

Corona virus summary:

The start of May sees more than half a dozen states relax lock-down measures that were imposed as the corona virus pandemic began spiraling out of control on U.S. soil. As of Friday morning, the U.S. has seen more than a million corona virus cases and more than 63,000 deaths.

President Trump announce a plan on April 16 to reopen the country in three phases, based on the severity of the outbreak in each state or region.

Technical analysis:

Gold has been trading downwards. The price tested and rejected of the level at $1,670, which is good sign for the potential rally. My advice is to watch for buying opportunities on the dips using the intraday frames like 15/30 minutes...

Trading recommendation:

Watch for potential buying opportunities on the dips with the upward targets at the price of $1,691 and $1,716.

Stochastic oscillator is in oversold condiiton and there is the fresh bull cross, which increases the odds for the rally.

Resistance levels are set at the price of $1,691 and $1,716.

Support level is set at $1,6170.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Performed by Petar Jacimovic,
Analytical expert
InstaForex Group © 2007-2020

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