Gold: Short-Term Buy
Gold Futures, 4-Hour Chart Analysis
Gold is still trading in a broad advancing trend channel on the 4-hour chart after this week’s mild correction. The $1240 support held the price twice in the last period and the precious metal remained relatively strong in the face of the Dollar’s rebound. Gold might be ready to re-test the 1260 resistance in the coming days, and the current setup provides a favorable stop-loss chance for short-term traders.
Further support is found near 1235 and 1226, while another resistance level is just above 1260 near 1265. Long-term traders could also be looking for long positions here, and the lower boundary rising long-term channel around 1220 might be an ideal stop-loss level.
USD/JPY: Short-Term Buy (Update)
USD/JPY, 4-Hour Chart Analysis
Our short-term recommendation (issued on Monday) reached its target price overnight, and we closed the position, but traders who think that the pair might reach further have other options. The cross is still trading in a rising short-term trend, and the MACD indicator remains in on a buy signal, still in neutral territory. A weak long-term trend is ahead posing as resistance around the 112.50 level.
Traders are recommended to raise their stop-loss levels as the price moves higher, with the 110.70 and the 110 support levels providing opportunities for that. A great position management option is to exit a part (maybe half) of the original position when reaching the initial target level, and raising the stop-loss level or the remainder of the position.
View a summery of the current and past recommendations here.