FxWirePro: Gold extends major uptrend through saucer pattern, surpasses 88.6%. – trading & hedging setup
Source: FxWire Pro - Technicals / 17 May 2020 19:23:43 Europe/London
The gold price is edging above $1,732 levels, the yellow metal gains considerably from the last couple of days, especially after the lows of $1,455 levels.
Technically, on XAUUSD (Gold) price chart, bulls bounce back above DMAs with bullish crossover upon strong support, the prevailing uptrend is most likely to prolong further as both the leading oscillators signal bullish momentum.
The current price continue to spike further testing support at 7-DMAs despite prevailing pandemic circumstance.
On a broader perspective, the major uptrend extends through saucer pattern (refer monthly chart).
Bulls break-out stiff resistances of 1,705.56 level (i.e. 88.6% Fibonacci level) of December 2015 lows of (i.e. 1044.62) and October 2012 highs of (1922.88) as hammer counters at saucer (i.e. near double top neckline), the current prices spike off well above EMAs with bullish crossovers, the major uptrend is most likely to prolong saucer pattern upon bullish EMA & MACD crossovers, while both the leading oscillators substantiate the buying sentiments on this timeframe as well.
At spot reference: $1,734 level, on trading grounds, one-touch call options trading strategy with upper strikes at $1,747 levels. The strategy achieves leveraged yields if the underlying spot FX keeps spiking higher towards upper strikes on the expiration.
Alternatively, on hedging grounds, we advocated long positions CME gold contracts of May’2020 delivery as we could foresee more upside risks and intensified buying interests on safe-haven sentiments amid geopolitical turmoil and the global financial crisis.© FxWire Pro 2020. All rights reserved. The FxWire Pro content received through this service is the intellectual property of FxWire Pro or its third party suppliers. Republication or redistribution of content provided by FxWire Pro is expressly prohibited without the prior written consent of FxWire Pro, except for personal and non-commercial use. Neither FxWire Pro nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.