Market Is On Fire So Why Are Gold Traders Quiet?
Arslan Butt • 1 min read
The Gold prices traded in line with the forex trading signal suggested in our earlier update Gold Below 50% Retracement Level – Is It Time To Sell? Overall, the precious metal has stuck in the narrow trading range of $1217- $1223.
As discussed in the morning Forex Signals Brief for May 11th, the market was supposed to gain volatility and that's exactly what happened with the market upon the release of economic figures from the United States and the United Kingdom. Nevertheless, the precious metal failed to get investors' attention as most investors were focused on capturing the breakouts in the EUR/USD and GBP/USD.
The labor market figures from the U.S. remained in favor of the U.S. dollar. In particular, unemployment claims fell slightly to 236K which was better than the previous forecast of 238K & 245K respectively.
Forex Trading Signal
The market is highly unpredictable at the moment and the Gold is having a choppy session. Therefore, I'm looking to use the choppy market to my advantage. I suggest investors take up a sell position below $1223 with a stop loss $1226 and take profit at $1219 and $1214.
Gold – Hourly Chart
Technical Outlook – Intraday
On the hourly chart, we can see the symmetrical triangle pattern which is extending support at $1218 along with resistance of $1223.
The symmetric triangle pattern gives an indication to investors and a breakout always comes with a huge round of volatility and fluctuation.
In the smaller time frame, 50 periods EMA and the RSI seem bearish, which opposes the buying sentiment and provides resistance to the Gold at $1223. The nearest support is at $1219 and the break of this support is likely to lead the market towards $1214.