A Potential Trade Idea – the Gold
Arslan Butt • 1 min read
Yesterday, our analysis on gold entitled, Gold Stuck In A Range – When Can We Expect A Breakout? turned out to be incredibly accurate. The precious metal gold placed a high of $1253, while our take profit was at $1252. Alas, we closed our trade taking fewer green pips before the release of U.S economic figures, to avoid uncertain fluctuations.
We have no regrets, because we trade technicals rather than luck.
Gold – Hourly Chart
At the moment, gold is trading at $1243 after breaking a strong trendline support level of $1244. The RSI (at 41) and the candles below EMA are signaling a selling bias in the yellow metal. Moreover, it has come out of an ascending triangle pattern.
So can we expect a big drop in Gold? Absolutely!
That is if the market keeps trading on technicals, without being influenced by any fundamental. Hence, the gold has a potential to target $1235 and even $1227, if it holds below $1246.