In my earlier update, I detailed the weekly and intraday targets for gold. Thankfully, the gold hit our take profit at $1266 (intraday target) during the late hours of the European session. Here’s how it all worked out…
The gold wasn't doing much yesterday, making it a bit difficult to capture green pips. Nevertheless, we made it possible, technically. Even today, looking at the 2-hour chart, the prices are still consolidating below $1271. The same level is now working as a double top level. Let me add, the double top patterns signifies a potential reversal.
However, the situation is a bit different here.
First, we can see an ascending triangle pattern which is extending a support at $1266 & a resistance at $1271. The ascending triangle usually breaks out upward. Can we expect a breakout? Well, only time will tell, but we need to stay ready. Want to find out more about triangle pattern? Check out our triangles forex trading strategy article.
Gold – 2-Hour Chart – Bullish Channel
Second, the gold is trading in a bullish channel, leaving us a good amount of room for buying until $1279, but only upon the breakage of $1271. Below $1271, the metal is likely to stay in sell until $1266.
Gold Trading Plan
Considering the technical sides, I will be waiting for the breakout at $1271 to enter a buying position with a target of $1278. Otherwise, if it holds below $1271, I will take a sell position, only if there is technical support. Stay patient and wait for our signal!
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