Gold has made new all time high today morning and this move was a clear sign that gold has become the safe heaven for the uncertain stock markets. Even the news that S&P has downgraded US Economy from its AAA rating to AA+ has been taken seriously by market participants. Today we will be trading Gold by using Fibonacci retracement level in our trading and the trade confirmation with the help of Slow Stochastic indicator with settings as (15,5,5). So taking a look at the technical charts we see that there is Fibonacci support at 1660 level and one can start buying gold near that level as this is Fibonacci retracement level 23.6%. We will confirm our trade using slow stochastic indicator and cross over must be taken as buy signal, as we always recommend to trade in the direction of the trend on the charts. So this will be a clear buying entry and on must not trade short in gold at any point of time. Though some profit booking might temporarily push the markets lower, traders must use this pullback as a buying opportunity and using stochastic for the trade confirmation. Just take a look at the technical chart given below.
Trading Gold for Intraday:
Trading Gold using technical analysis, our advice is to trade long on Gold above 1660 level for intraday targets as 1682 and 1698. A protective stop loss order should be placed just under 1642 level.
Alex Andreson says
Hi Bhaveek, I do follow your advices in gold and forex, I have already made good profit in last 6 months, I am a student from Melbourne, Australia. I have a advice to share, please also tell me how much quantity should I trade as many times I got margin call in my forex account.
Bhaveek Patel says
Hi Alex, I never knew that i have readers from Australia as well. Quantity for trading is also very important in trading as it can change margin requirement. You need to use leverage of 1:5 only for proper position size.
hitesh agarawal says
Your tips are very successful in gold, forex and nifty, I would like to know how you know this tips. I also want to learn giving advises.
Bhaveek Patel says
Hitesh, we generate these calls based on technical analysis. To learn technical analysis just visit this page here.
neeraj kumar says
I have used fibonacci retracement and slow stochastic many times, trading idea you have shared is also very much accurate. I need to learn more on money management, i can spot trade setup but money management is where i need to gain. Do you provide analysis on dow jones and s&p 500 which is now traded on nse. can you share margin required for positional trading.
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