Gold Trade Cashes Out – Who’s Up for the Next?
Traders, gold had continued to trade bullish in the risk-averse environment but fell hard off below a resistance level of $1,291 to...
Arslan Butt•Thursday, May 9, 2019•1 min read
- Traders, gold had continued to trade bullish in the risk-averse environment but fell hard below a resistance level of $1,291 to conclude the day back at around $1,281.
- Investors will continue to watch the report for updates on the trade talks between China and the US as the situation heats up with discussions starting later today.
- Concerns are still high that both parties will stiffen their stands, tensions will intensify, tariffs and counter tariffs will be enforced, and markets will come under intense downside pressure.
- Well, this is keeping gold prices supported, and has helped us secure a quick take profit at 1,284 in a bullish position.
Technical Outlook
GOLD took a bearish turn after testing the bearish trend line around 1,291 resistance area and seems to hold below the same level this week. The RSI is holding below 50, signaling a bearish bias of traders.
The 200 periods MA is holding around 1,291, and it also played a role in pushing gold prices lower in the previous session. The bullish breakout of 1,287 can once again extend gold’s bullish rally until 1,291. While gold can drop until 1,271 on the bearish breakout of 1,276 level.
Support Resistance
1279.84 1287.77
1275.06 1290.92
1267.13 1298.85
Key Trading Level: 1282.99
Consider staying bearish below 1,291 and bullish above 1,282 today with a 30 pips stop loss and take profit of 40 pips.
Good luck!
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ABOUT THE AUTHOR
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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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