Gold Hits Take Profit – What’s Next?


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 Hours Chart - Bullish ChannelGold – 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!

 
ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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