Gold Analysis and Trading Plan March 14, 2024 By PapaFinanceTalk

14 mar

Gold Analysis and Trading Plan: March 14, 2024
By PapaFinanceTalk
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Technical Analysis:
- Gold Price Rebound: After yesterday's decline, gold price rebounded to the 61.8% Fibonacci retracement level at approximately 2177.

- Fibonacci and Descending Triangle: This level coincides with the previous support zone of the Descending Triangle pattern on the left side of the historical price chart.

- Downtrend: In the smaller timeframe, the price has formed lower highs, confirming the downtrend.
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Potential Price Target:
- Demand Zone: There is a possibility that the price will retrace to the 2165 Demand Zone, which is a critical support area, and consolidate before continuing its descent.

- Lower Support: The next support level is located at 2155.

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Economic Data:
- Attention to the economic data to be released tonight, including US Producer Price Index (PPI), Initial Jobless Claims, and February Retail Sales.

- The US dollar may strengthen in response to this data, which could potentially impact gold prices.
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Trading Strategy:
- Follow Sell: Follow the markets the price has formed lower highs, confirming the downtrend.

- Wait for Confirmation: Wait for confirmation of the downtrend by observing a break below the 2165 Demand Zone.

- Short Sell: If the price breaks below 2165, consider a short sell position with a target of 2155.

- Stop-Loss: Place a stop-loss above the 2177 resistance level.
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Risk Management:
- Trailing Stop-Loss: Use a trailing stop-loss to protect profits and manage risk.
- Position Sizing: Adjust position size according to risk tolerance and account size.
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Disclaimer:
This analysis is for informational purposes only and should not be considered as investment advice. Always conduct your own research and consult with a financial professional before making any investment decisions.