Ascending Triangle Pattern & Gold – Ready To Buy? - Forex News by FX Leaders

Ascending Triangle Pattern & Gold – Ready To Buy?

Posted Tuesday, May 30, 2017 by
Arslan Butt • 1 min read

Today in the early Asian session, the gold surged to test $1270 as investors hiked their demand for haven assets due to North Korea's additional ballistic missile test.

In reference to the Forex Signals Brief for May 30th, North Korea is doing this test for the 9th time this year. For us, the most surprising thing is that event came right after the G7 meeting where countries pledged to exert more pressure on North Korea to stop them from launching more tests.

In the meantime, the elections in the United Kingdom are adding concerns about the political risk surrounding Brexit.

Forex Trading Signal

Considering the demand for haven securities, I have opened a buy signal at $1264 with a stop loss below $1259 and a take profit of $1267.

Gold - 4 Hours ChartGold – 4 Hours Chart

Technical Outlook- Intraday

Gold has traded in line with the predictions recorded in, What If Gold Breaks Above $1270? – U.S. Political Tensions In Focus. Investors were recommended to enter a buy position above $1263, having placed a stop loss below $1259 and a take profit above $1270.

At this point, the gold has broken below a significant support level of $1263, after testing $1270. Consequently, the gold has the potential to test $1259, placing our forex trading signal on risk.

Technical Trading Levels – Intraday

S1: 1252.64            R1: 1262.04

S2: 1243.23            R2: 1267.85

S3: 1237.42            R3: 1277.2

Now let's cross our fingers and wait and see if the U.S. economy fundamentals manage to support our buying positions.

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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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