My recent re-entry into SPDR GLD ETF listed in Singapore Exchange (SGX) on 2 December 2019 was timing with precision, Based on Technical Analysis (TA) and Fund Flow Analysis, i decided to take a long position sense that something was about to happen which caused Gold price to stage a rally and there was a geopolitical conflict between USA and Iran which happened on the 3 January 2020 caught many by surprise, where USA lauched a drone missile assassination on late Iran general Qassem Soleimani, followed by Iran launch an offensive retaliatory missile on USA airbase in Iraq Baghdad with no fatalities reported on 8 January 2020. It all started with an American civilian contractor was killed in a rocket attack in USA military base in iraq on 27 December 2019 followed by an attack on USA embassy in Baghdad.
https://www.aljazeera.com/news/2020/01/iran-quds-force-leader-vows-manly-revenge-soleimani-200120144819073.html
https://www.nytimes.com/2019/12/27/us/politics/american-rocket-attack-iraq.html
https://en.wikipedia.org/wiki/Attack_on_the_United_States_embassy_in_Baghdad
Monthly Chart With Technical Analysis - 13 November 2019
From the technical charts perspective, it is observed after reaching 150 USD price level, price has retraced to the low of 136 USD price level which is a 9.3% correction from recent high, the classical neckline resistance turn support level is 132 to 135 USD price for accumulation. The price gap down has been filled after 6 years in 2019 since April 2013 saw week 8 to 12 with low 150.50 and week 15 to 19 with high 145. The price gap down is a resistance for Trader investor to take note and to profit taking their positions for re-entry again preferably in the range of 10% to 15% retracement in a healthy bull market environment. Currently swing trade setup is observed with a price target range of 165 USD to 175 USD price level before challenging all time high of 187 USD price level set in Oct 2011. Currently we are still in a bull market phase since year 2009 with year 2020 theme of investment for Commodities. US dollar is still trading at the peak hence downside pressure price level is anticipated accelerating Commodity Gold price rally in the coming years, having an inverse relationship.
https://www.bloomberg.com/news/videos/2020-01-21/why-goldman-sachs-s-currie-is-bullish-on-commodities-in-2020-video
Gold Futures Monthly Chart 20.01.20
To take a position in Gold, one can consider various financial instruments to suit you risk appetite and risk rewards ratio objective. Trader can Trade physical gold bar bullion (1Kg), or trade gold currency XAUUSD or trade SPDR GLD 10USD Exchange Traded Fund (ETF) listed in Singapore Exchange or gold mining company
Exchange Traded Fund (ETF) is define as "an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds and generally operates with an arbitrage mechanism designed to keep it trading close to its net asset value, although deviations can occasionally occur. Most ETFs track an index, such as a stock index or bond index. ETFs may be attractive as investments because of their low costs, tax efficiency, and stock-like features."
https://en.wikipedia.org/wiki/Exchange-traded_fund
ETF can be considered as a mutual fund listed as securities in a stock exchange with lesser violatility where stock exchange operating hours are 9am to 5pm whereas in a Forex or Commodities Futures markets, it is operating 24/7 5 days a week with increased violatility.
Finally, i closed my SPDR Gold ETF with a profit before the meltdown Sorry for the late update due to extremely busy lately over the covid-19. The reason i closed my long gold etf position was due to overhype and i felt extremely uncomfortable.
Disclaimer: All news, information and charts shared is purely by my research and personal views only. This is not a trading recommendation or advice but on the basis of sharing information and educating the investment community. Different traders and investors adopt different trading strategies and risk management approach hence if in doubt please approach or seek clarifications with your Financial Adviser, Broker and Banker.
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ReplyDeleteThank you for sharing such valuable and helpful information and knowledge. Thank you for sharing the amazing post with us. Keep it up. I would love to see your next update.
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