Gold Hovering At Crucial Level – A Long Term Trade Idea
Arslan Butt • 2 min read
In our weekly forecast report, we shared that this week is full of trading opportunities all we need is to spot them. So far, by the end of the Asian session, we have gained four profitable trades in the NZD/USD, Gold, Nikkei and the WTI Crude Oil. In addition to this, the AUD/USD has moved exactly as we predicted in our 4th April Morning Brief.
At present, the Gold soared to trade at $1258 after hitting our take profit at $1260. One of the major reasons behind the bullish wave in the Gold is the sell-off in the equity sector. So far, the global stock markets are trading bearish, in particular, we have seen a terrific sell-off in the Nikkei.
Perhaps, the yellow metal is getting continuous support due to the ongoing uncertainties brought on by the Eurozone elections along with the upcoming meeting between the U.S President Donald Trump and Chinese counterpart Xi Jinping.
Gold – Hourly Chart
Major Technical Levels
On the daily chart, the $1260 is working a major resistance for the Gold. It has been more than a month now that the Gold has failed to violate the triple top resistance level of $1260.
What Happens If Gold Breaks Above $1260?
The break above $1260 is likely to open further room for buying until the new target level of $1302. Though it's a long-term prediction, I will be more comfortable in adding the buy positions once the market closes above this $1260.
Our Friends the Technical Tools
I often say the technical tools are our friends. We should consult them before adding a new position. The Gold prices are hovering above 50 periods EMA and the RSI is also holding above 50, signaling a strong bullish bias for the bullion.
Long Term Trading Signal: Investors are recommended to open a buy position only above $1261, with a stop loss below $1237 and a take profit at $1276 & $1301. We also need to keep a close eye on the U.S NFP employment change and the unemployment rate, which are due to be released on Friday.