Gold prices rise against the background of the Middle East crisis
In this review, we recommend considering the personal composite instrument (PCI) Gold against the Russian ruble. It reflects the dynamics of gold prices expressed in Russian rubles. The PCI increases in case of the weakening of the Russian ruble and an increase in gold prices on the world market.
On the daily timeframe, the XAURUB: D1 is in a neutral trend. In order to open a buy position, the prices should exit from it to the top. The further price increase is possible in case of the strengthening of conflicts in the Middle East and USA, as well as in case of the further rate cut by the Central Bank of the Russian Federation.
- The Parabolic indicator gives a bullish signal.
- The Bollinger bands have narrowed, which indicates a low volatility. They are titled upward.
- The RSI indicator is above 50. No divergence.
- The MACD indicator gives a bullish signal.
The bullish momentum may develop in case XAURUB rises above the neutral range at 73330. This level may serve as an entry point. The initial stop loss may be placed below the last fractal low and the Parabolic signal at 70800. The most risk-averse traders may use the lower boundary of the neutral trend as a stop loss at 69000. After opening the pending order, we shall move the stop to the next fractal low following the Bollinger and Parabolic signals. Thus, we are changing the potential profit/loss to the breakeven point. More risk-averse traders may switch to the 4-hour chart after the trade and place there a stop loss moving it in the direction of the trade. If the price meets the stop level at 70800 or 69000 without reaching the order at 73330 we recommend cancelling the position: the market sustains internal changes that were not taken into account.
Summary of technical analysis:
| Position | Buy |
| Buy stop | Above 73330 |
| Stop loss | Below 70800 or 69000 |