Multiple Trade Idea Before NFP – Sideways Gold!
Arslan Butt • 1 min read
At the moment, Gold trading is more about technicals than fundamentals. Undoubtedly, we are approaching NFP tomorrow, but ahead of this let us take a look at the technical outlook for the Gold.
Gold – 4 Hours Chart – Wide Range
On the 4 – hour chart, we can see that the gold is consolidating in a wide trading range with a lower limit of $1217 and an upper limit of $1229. Hence, the first trade idea is to enter a sell position $1228 with a minor stop loss above $1231 and a take profit of $1224.
Likewise, the second trade idea is to have a buy position above $1217 with a stop loss below $1215 and take profit at $1224. The point to note is we are following a strict money management strategy here with a risk to reward ratio of approx 1:2.
Gold – Hourly Chart – Narrow Range
Now let's switch to the hourly timeframe, as it has another range of $1224 – $1228. The breakage of this range is likely to offer us a quick sell up to 1219 for 40 pips.
Summing Up – Today, the market is unlikely to break these technical ranges, but odds are high for tomorrow. So, it's better to trade with lower volume to cope with uncertainty and risk.
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