Technical Analysis XAUUSD : 2014-07-07


Good afternoon, dear traders. We remind you that now we include the technical analysis for precious metals CFDs in IFC Markets regular analytical releases. Today we consider the XAUUSD instrument on the H4 chart.

XAUUSD

The price overcame the first resistance level at 1323.01 and is moving inside the H4 downtrend channel. The trend formation was caused by the macroscopic D1 trend: we can see the main trend confirmation according to the tenets of Dow theory. It should be emphasized that the bearish mood is confirmed by the ParabolicSAR trend indicator and the RSI-Bars oscillator. The last three candlesticks also crossed the PivotPoints signal line and its first support. Thus, we have obtained the downtrend confirmation on the part of the graphical analysis of all oscillator types. We expect a further resistance break-out at 1309.57, which probably will refresh the RSI-Bars local trough (28.57).

Pending sell order is to be placed below the last fractal trough at 1309.57.This level is confirmed by the ParabolicSAR historical values and the Pivot resistance. Risk limitation level corresponds to the last fractal peak at 1323.01. This level also confirms the historical values for both indicators under consideration. The Dynamic Trailing Stop is to be moved after the Parabolic values every 4 hours (trend following strategy), changing the probable profit/loss ratio in your favor. We can also place Trailing Stop at a specific distance from the price indicated by the arrow on the chart, i.e. the distance between the two closest peaks: 920 points. This strategy is convenient if we can not control the situation, and return to the terminal on a regular basis.

Directiondown
Buy sellbelow 1309.57
Stop lossabove 1323.01

Note

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