Unstoppable Gold Has Another Bullish Wave

Yesterday, the precious metal Gold suprisingly soared, despite the uncertainties in the global markets. The Gold has added more than 200 pips in the short time span of 2 days. Additionally, the Gold prices closed higher for a 5th consecutive session yesterday. Honestly, that was a completely unexpected move seeing as the Gold was already in an overbought territory.

It's a rule of this market – any fundamental news can ruin your trades. Nevertheless, we were lucky to come out of the market making green pips in the Nikkei and Crude Oil.

However, the major reason behind this bullish wave was a drastic dip in the global stocks after the energy sectors showed losses. The Nikkei fell around -0.37%, the crude oil was down by -0.86% and the precious metal Gold surged nearly +0.61%.

GOLD – Hourly Chart

Technical Outlook

Similiar to the other day, the Gold is trading at $1248, above a major support level of $1242. The leading indicator, RSI is holding at 75 and it seems like we may see sellers soon. By the way, 50 periods EMA is suggesting a bullish trend. In the 4-hour chart, we can find Three White Soldiers candlestick pattern, demonstrating the bullish trend is not over yet.

Trade Signal: I have just opened a buying position above $1247, with a stop loss below $1242 and a take profit of $1252. Our Oil Signal remained in profit overnight, but it's once again, showing losses. To deal with this situation, I recommend you drag your stop loss into the breakeven price to mitigate the risk of loss.