SaxoTV

O’Hare: Gold stalls ahead of Swiss vote

443 views
November 28, 2014 commodities, commodity, commodity market, commodity prices, commodity strategy, commodity trading, gold, gold price, referendum, saxo, saxo bank, saxo bank saxo tv, saxo bank trading floor, saxo bank tradingfloor.com, saxo tv, saxo tv saxo bank, saxo tv trading floor, saxo tv tradingfloor, saxo tv tradingfloor.com, saxotv, steve ohare, steve ohare first 4 trading, swiss, swiss national bank, switzerland, trade idea, traders tale, trading, tradingfloor.com
Gold has rallied in the past few weeks, fuelled by profit taking and short-covering ahead of a referendum in Switzerland on Sunday, which could force the Swiss Central Bank to triple its gold reserves. Technical analyst Steve O’Hare from First4Trading expects the vote to be a “No”, which would make the premium on gold evaporate. 

Gold posted a 55-month low on November 7. Prices have since corrected, resulting in a 6.75% rally towards the 61.8% Fibonacci retracement level of 1208 USD/oz. This week has resulted in a trend of lower highs and attention now turns to the crucial support area between 1178-1182 USD/oz. The short term bullish channel also lends support here and a clear break should signal a return to the yearly lows. 

Steve looks to sell gold (XAUUSD) on a break of 1175 USD/oz. His targets are the recent low of 1132, the 161.8% Fibonacci extension at 1103 and an AB=CD target of 1085. Steve’s stop on this trade is a break back above 1210 USD/oz

Trade idea parameters
Period: 1-2 weeks
Entry: Steve looks to sell XAUUSD on a break of 1175 USD/oz
Stop: A break above 1210 USD/oz
Target: 1132, 1.103 & 1085 USD/oz