Bearish Gold and an Ascending Triangle – Trade Idea! - Forex News by FX Leaders

Bearish Gold and an Ascending Triangle – Trade Idea!

Posted Wednesday, September 27, 2017 by
Arslan Butt • 1 min read

Good Morning. Gold extended quite an exciting bearish wave and fortunately, we jumped in on time and managed to cash more than 65 pips. Did you miss it? No worries at all, I'm seeing another hot trading setup in Gold. Let's crack it.

Yesterday, the prices were boosted by the increased demand for haven assets. The hike in demand was triggered after North Korean Foreign Minister Ri Yong Ho warned that Pyongyang has the right to “shoot down U.S. bombers.” However, the technicals took control and turned the direction of the Gold trend.

Gold – Technical Outlook

If we look at the 3-hour chart, the Gold is consolidating just above the double bottom level of $1,289. The double bottom is considered to be a potential reversal pattern.

Gold 3 - Hour Chart - Triangle Pattern Gold – 3- Hour Chart – Triangle Pattern

The break below $1,289 can extend Gold losses towards $1,281 today. Whereas, the Gold on the upper side has a potential to go for $1,300 and $1,304. Besides this, the 50-periods moving average is resisting the metal at $1,302, confirming the bearish sentiment of investors.

Gold – Trading Idea

Today, I'm looking to stay bullish above $1,287 with a stop above $1,283 and take profit at $1,302. Traders, make sure to follow strict money management strategies, perhaps, you can refer to FX Leaders Risk Management Strategies to enhance profitability. Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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