Investment Recommendations May 12th

Gold: Long-Term Buy

Gold, Daily Chart Analysis

Gold has been trending lower since the first round of the French elections, and it dipped $80 to hit $1220 this week. The re-test of the previous low near $1195 is still possible, as we are approaching a possible cycle low in the coming two weeks. That said, the risk-reward ratio for a long-term purchase is already favorable, with a likely test of the $1315 level in the next long-term swing higher.

Stop-loss orders should be placed just below the $1195 support, although the $1180 level could also be considered for a more robust position. The upper boundary of a long-term triangle pattern is right now at $1270, and a break above that level would confirm the new bull market. The initial target zone for the trade is just above $1300, while a push towards $1350 is also possible.

Author:
Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.