If You’re Trading Gold Anytime Soon, Keep These 2 Areas In Mind
Gold has been going up in the past three weeks or so and nothing could stop it as it is often the case with this stubborn metal, but this week gold has traded sideways mostly.
- Resistance Gold has formed a couple of levels this week which every forex trader who wants to trade Gold in the coming sessions must keep in mind. On the top side, the price action in Gold has formed 3 resistance levels, at $1,270, $1,272 and $1,274, besides the $1,292 level being the ultimate resistance.
- Support At the bottom of the range we have the first support level at $1,259 which used to be resistance about 2 weeks ago. That was the low tonight when Gold sellers had a second attempt at the downside, but the 100 smooth MA was a bit too much for them.
2 areas and 5 levels to keep an eye on
The next and more import support level comes at $1,256-7; it has been providing support and resistance more often than the previous level, so the chances are that it would provide some good price action for a Gold trade.
Trade Idea: Trading the ranges is pretty simple, buy at support with a stop below it and a take profit target near resistance and vice versa, as my colleague Ron suggested just a while earlier in our last Gold update. The catch with Gold is that it is extremely volatile, so you have to reduce lot sizes in order to keep the risk under control.
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