Gold Traders Are Confused, But Here Is a Trade Setup!
Arslan Butt • 1 min read
It's been a week now, and the precious metal Gold is still consolidating in a narrow trading range of $1243 – $1260. This is mostly due to confusing trends in the U.S dollar and ongoing tensions around the globe.
For example, today Theresa May, the British Prime Minister, is supposed to trigger Article 50 of Brexit. The purpose is to formally begin the 2- year process to exit the Eurpean Union.
Investors are feeling cautious about the potential outcomes of the event. We know that whenever there is uncertainty in the market and trends, most investors invest in the safe haven asset, Gold. This is why even the strong USD is unable to cause a selling trend in Gold.
Gold 4- Hours Chart
Technically, the gold still looks bullish as it's trading above 50 periods EMA, along with the RSI (above 50) which is maintaining a bullish sentiment.
In addition to this, we can see an ascending triangle pattern in the 4-hour chart, which is extending a strong support at $1248, and a resistance at $1260. Although, the ascending triangle patterns are meant to break upside.
Trading Idea: We can enjoy choppy trading by selling at the top $1260 or through buying at $1248 with minimum stop loss. However, let's also wait for the potential breakout in the precious metal Gold which is possible due to Article 50.