Green Pips In The Gold – A New Trade Setup Ahead - Forex News by FX Leaders

Green Pips In The Gold – A New Trade Setup Ahead

Posted Tuesday, May 9, 2017 by
Arslan Butt • 1 min read

The Gold prices have stuck in a sideways trend ever since the release of the French election results. This was caused by the increased desire for risk investments due to the fall in uncertainty in the global markets.

As a consequence, the Gold prices have dropped to trade in a narrow range just below $1235 over the previous week. The prices have fallen over 3% overall, the sharpest drop in close to six months. 

Anyways, we remained fortunate with our previous forex trading signal on Gold as it matured at the recommended take profit.

Forex Trading Signal

Considering the light trading volume, I would suggest a selling position below $1225 with a stop loss above $1228 and a take profit of $1219 and $1215.

Gold Bearish Trade Setup - 4 Hours ChartGold Bearish Trade Setup – 4 Hours Chart

Technical Outlook  – Intraday

Today seems to be a dead day as most investors are not entering the market due to the lack of major economic events. We will need to look at the technical side to find trade opportunities.

At the moment, the Gold seems strongly bearish as the RSI is holding at 34 (below 60) along with the 50 periods EMA which is also signaling a selling sentiment on the part of investors.

Additionally, we can't ignore the bullish trend line on the daily chart which is supporting the yellow metal at $1214. Sooner or later, we may have a buying entry at $1214.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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