Bearish Gold Gains Support – Good Time to Enter Buy!
Arslan Butt • 1 min read
What's up, traders. On Monday, our forex trading signals secured some nice profits in crosses and DAX, while Nikkei was a minor hit. As suggested in the Crucial Level for Gold – Investor's Awaits Confirmation, the Gold hit the target level of $1306 on the breakage of $1313. Now let's take a look at the new trading idea.
Reasons Behind Bearish Gold
- On Monday, the Gold prices fell over the fading tensions between North Korea and the United States suppressed demand for haven assets.
- The recent strength in the USD caused a shift in investor sentiment ahead of the Federal Reserve’s two-day policy meeting due on Tuesday. Perhaps, the investors will be waiting for the policy meeting before taking any big decision, and that's what we all need to do.
Key Technical Drivers
Taking a look at the 4- hour timeframe, the Gold is trading exactly above the support $1306 level. Most of the selling in the yellow metal is initiated after the breakage of bullish channel.
Gold – 4 Hour Chart – Support Levels
The Doji candle followed by a strong bearish trend is weakening the selling sentiment of Gold. It means now the investors are confused about a further bearish trend. For now the yellow metal is holding above a vital trading level of $1306. The break below $1306 is likely to add further selling up to $1297. The Stochastics is massively oversold signaling a high probability reversals.
Gold – Trading Idea
Today I'm going to take first buying position above $1306 and second buy position above $1297 in order to target $1316. Good luck.