A Crucial Level for Gold – Investors Await Confirmation!
Arslan Butt • 1 min read
Good day, traders. This week is highly significant from the trading point of view due to top-tier economic events coming out from several economies. At the moment, the Gold is at the crucial spot to enter into a bullish or bearish zone. Let's plan it out…
Key Technical Drivers
Previously I was talking about the bullish channel which proavided a nice support to the precious metal Gold at $1330 – this isn't in action anymore. As forecasted, the Gold retreated to retest $1330 resistance during the previous week and gave us a good selling opportunity.
Gold – 4 Hour Chart – Bullish Channel Breakout
At the moment, the yellow metal is holding above a crucial trading level of $1317. The break below $1317/15 is likely to push the market deeper towards $1306 but if candles keep closing above the same level, we may see another bullish wave until $1324 and $1329.
Besides this, the Stochastics is entering the oversold region signaling chances of reversals. Zooming in the 4 -hour chart, the most recent candle is showing a tug of war among bulls and bears since half of the candle is bearish and half is bullish.
Gold – Trading Idea
Today, we can risk taking a buying position above $1315 with a stop below $1312 and take profit at $1324/26. Whereas, below $1313, we can sell gold with a target of $1306. Traders, we need to ensure the strict risk management, thereby follow the FX Leaders Risk Management Strategies to limit your risk and maximize the profitability. Good luck.