Quick 200 Pips In Gold – ABCD Pattern In Action
Arslan Butt • 1 min read
In my earlier update ABCD Pattern – Gold Bulls Looming at C, I mentioned a Forex Trading Signal that involved buying at $1267 with an aim at $1279 and an ultimate target of $1299 this week. Gold is doing fantastic as it's up more than 200 pips by now. Check out what to expect next…
Highlights of FOMC
My buddy Shain gave a quick overview of FOMC meeting minutes FOMC Minutes Release: Key Statements, Scratch The Gold Scalp. The minutes remained dovish as we didn't see any intention of reducing FED balance sheet as well as no further rate hike clues. Therefore, traders quickly switched to gold by selling off the U.S. dollar.
Key Technical Players
In my previous update, I that the ABCD pattern on the 4-hour timeframe was suggesting a bullish entry at $1267. By now, gold has reached $1287, the C to D wave.
Gold – 4-Hour Chart – ABCD Pattern
– Stochastics has come out of the oversold region and is entering the overbought region now.
– The 50- periods EMA has a bullish crossover at $1273, signifying investors' bullish bias.
– Gold is still trading in the boundaries of a bullish channel, emphasizing investors' bullish bias.
Gold Trading Plan
Since gold is already in a bullish trend mindset it would make sense to look solely for bullish entries. So, I'm going to wait for the retracement below $1290.
We have two trade ideas:
- Stay in sell below $1290 with a stop loss above $1296 to target the $1277.
- Buying above $1277 with a stop below $1274 to target $1295 later this week.
Good luck traders, keep following for profitable forex trading signals.