Jump to content

Gold Price Defends September Range as RSI Holds Above Oversold Zone


MongiIG

Recommended Posts

Gold Price Talking Points

The price of gold trades to a fresh weekly high ($1688) even as the Federal Reserve delivers another 75bp rate hike, and bullion may continue to defend the September range as the Relative Strength Index (RSI) appears to be reversing ahead of oversold territory.

Gold Price Defends September Range as RSI Holds Above Oversold Zone

 

Gold Price Defends September Range as RSI Holds Above Oversold Zone

The price of gold bounces back from the monthly low ($1654) as US Treasury yields pull back from fresh yearly highs, and the precious metal may stage another attempt to test the 50-Day SMA ($1732) as the RSI holds above 30.

As a result, the price of gold may continue to retrace the decline from the monthly high ($1735), but bullion may fall back towards the yearly low ($1654) as it seems to be tracking the negative slope in the moving average. Keep in mind, the price of gold cleared the May 2020 low ($1670) following the failed attempts to push above the moving average, and the precious metal may face headwinds over the remainder of the year as the Federal Open Market Committee (FOMC) projects a steeper path for US interest rates.

 

Gold Price Daily Chart

Gold+Price+Daily+Chart+09.21.2022.png

Source: Trading View

  • The price of gold cleared the May 2020 low ($1670) after failing to test the 50-Day SMA ($1732), and bullion may continue to threaten the yearly low ($1654) as it appears to be tracking the negative slope in the moving average.
  • Failure to defend the September range may push the price of gold towards $1748 (50% expansion), with the next area of interest coming in around $1601 (38.2% expansion) to $1618 (50% retracement).
  • A break/close below the $1584 (78.6% retracement) region opens up the April 2020 low ($1568), but the price of gold may continue to defend the September range as the Relative Strength Index (RSI) appears to be reversing ahead of oversold territory.
  • Need a break/close above the $1690 (61.8% retracement) to $1695 (61.8% expansion) region to bring the $1726 (38.2% retracement) region on the radar, with a move above the 50-Day SMA ($1732) raising the scope for a test of the monthly high ($1735).

Sep 22, 2022 | DailyFX
David Song, Strategist

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      21,174
    • Total Posts
      90,695
    • Total Members
      41,276
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    muntazir
    Joined 28/01/23 09:29
  • Posts

    • Capital, win loss ratio. If you have a trading edge and you can consistently win 50% of your trades, so your winning 5 trades out of 10. So if your risking 1% of your capital per trade, out of your 10 trades 5 would be losers, so that’s 5% loss and realistically out of the 5 winning trades, some would make small profits, some break even and 1, 2 or 3 could run nicely IF you can let your profits run, basically your making money out of 2 trades out of the 10 trades (80/20 Rule Pareto principle) So a $20,000 acct risking 1% is $200 per trade, this will keep the trader with his trade risk based on being able to win 50% of his trades. A long term trend trader can win with 30% wining trade. Basically you need to know your numbers. Rgds Pete
    • Investing in stocks can be a great way to grow your wealth over time. However, there are different approaches that investors can take when choosing which stocks to buy. Two of the most popular approaches are growth investing and value investing. Growth Investing Growth investing is an investment strategy that focuses on buying stocks of companies that are expected to grow at a faster rate than the overall market. These companies are often in industries that are growing quickly, such as technology or healthcare. Investors who use this approach believe that these companies will be able to generate higher profits in the future, which will lead to higher stock prices. One of the main advantages of growth investing is that it can potentially provide higher returns than the overall market. However, it is also riskier than other investment strategies, as these companies often have higher valuations and more volatile stock prices. Value Investing Value investing is an investment strategy that focuses on buying stocks of companies that are undervalued by the market. These companies may be in industries that are out of favour or have recently experienced challenges, but they have strong fundamentals and a history of profitability. Investors who use this approach believe that these companies are undervalued and that their true value will be recognized in the future, leading to higher stock prices. One of the main advantages of value investing is that it can potentially provide lower risk than growth investing. However, it may also provide lower returns in the long run, as these companies may not have the same growth potential as companies in the growth investing category. Comparing Growth and Value Investing Growth and value investing are two different approaches to stock investing, each with its own advantages and disadvantages. Growth investing can potentially provide higher returns but is riskier, while value investing can provide lower risk but potentially lower returns. An investor may choose one approach or a combination of both. A portfolio that contains a mix of growth and value stocks can provide a balance of potential returns and risk. Conclusion Both growth investing and value investing can be effective ways to invest in stocks. The key is to understand the potential risks and rewards of each approach and to choose the one that aligns with your investment goals and risk tolerance. Analyst Peter Mathers TradingLounge™ 
    • I am a beginner, and I must say, there are a lot of rules to the trading game that one must abide by if they want to be successful.   Here, the writer mentions several basic rules for day vs swing trading.  However, I find that often times, the reasoning for these rules is not as  obvious for a beginner as it may be for an expert.   The 'why' factor if I may. For example, why must you have a large capital to trade with as a day trader? Because your positions must be large so that a small change in price will be augmented and turned into a large profit. Also, with such high risk, the margin will be specially high, given the trader is taking up large positions at a time.  Without a large amount of capital, positions may be forced to close due to funds being below margin requirements.  When this happens, you can expect to lose tons of cash, fast.  I learned the hard way. All the best, David Franco      
×
×
  • Create New...