Gold Completes 50% Retracement – Get Ready to Buy
Arslan Butt • 1 min read
Good morning traders, I hope you profited from yesterday's trading signals and analysis. Today we have a few fundamentals to look forward to, but most traders are awaiting the Non-farm payroll tomorrow. Let's discuss the potential trades in gold.
As mentioned in my previous report, the investors will be monitoring the U.S. GDP along with the ADP report. Both of these remained in favor of the U.S. dollar.
U.S. GDP rose in the second quarter of 2017 at the annualized rate of 3.0%. Investors are building trust in the U.S. economy, as the GDP was forecasted to be 2.7%.
Besides this, the ADP employment data reported an uptick in private payrolls of 237K for August. It was forecasted to be 185K. Now, the investors are trading with a bullish dollar sentiment, keeping the gold in bearish mode.
Key Technical Drivers
- We can see on the gold 4-hour, the gold completed a 50% retracement at $1300, and it has formed a 50% bearish candle. Looking at the formation of the candle, it seems like half of the investors are bullish and half are bearish.
Gold – 4-Hour – Fibonacci Retracement
- The Stochastic and RSI are in oversold territory, offering us a signal to enter a buy position above $1300.
- Immediate support prevails at $1300 & $1294. The resistance will be at $1307 and $1313.
Gold Trading Plan
I'm placing my buy limit at $1295 with a stop loss below $1290 and take profit $1306 and $1311. Good luck!