Bearish Gold and an Ascending Triangle – Trade Idea!
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
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!