CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Gold in Australia

Australian gold producers in a far better place.

IG Analyst

Publication date : 2017-01-09T00:38:22+0000

On 23 November 2016, I wrote about the possibility of gold ($1212.00) testing the breakout level of $1100. In the following weeks, a $90 move lower took place but did not reach the charted target price. Three weeks ago, gold posted an inside week (IP) with this week completing a pivot point reversal.

During this time, Australian dollar gold price also crossed back over $1600/oz and is now putting the Australian gold producers in a far better place.

Gold

Click to enlarge

This now brings into focus the Australian gold producers. The chart below shows four of the major stocks mirroring the gold price movements. All have similar pivot point reversals in place, however all are technically in a primary down trend, as is gold.

Gold trade

Click to enlarge

The underlying commodity would be expected to find resistance at the breakdown level of $1200. In the current movements of these underlying gold stocks, the same picture would be expected. As a form of risk management on a long position, the stop loss could be placed under this first week of January’s low price, for the commodity this is $1145.00.

For the individual gold stocks, the low of this week can be identified and used as the stop loss for a long position. Of the charts displayed, all have had a strong reaction to the underlying with pivot point reversal price action in place, a continuation of price moves would be expected.

Gold

AUM Gold 090117

Gold trade

AUM Gold 2 090117

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