Bearish Gold Gains Support – Trading Plan!
Arslan Butt • 1 min read
What's up, traders. Hope you are enjoying our analysis. Recalling my previous update Gold Shine Begin to Haze – Stronger Dollar In Play, it was a good idea not to enter a buy position above $1,282. Fellas, it's always preferred to stay out of the market if things are unclear as we don't need to trade for the sake of trading.? Though the trade setup isn't clear today, I'm looking to trade in Gold today…
Quick Fundamentals Review
Gold prices are still under pressure as the traders are looking for support from the Indian physical markets as the Chinese markets are on a week-long holiday next month. As per China Tourism Academy, more than 700 million people will go on vacation during China’s forthcoming “Super Golden Week,” that blends the National Day and Mid-Autumn Festival holidays. Consequently, the Gold prices are probable to stay on a lower side.
Why demand from China and India makes a difference? Well, China attained the status of highest gold jewelry consumption in 2016, overtaking India. Hence, any news of Physical demand from any of these economies does makes a huge difference.
Technical Outlook – Gold
The Gold is following a strong bearish trend especially after the breakage of $1,287. It's been consolidating below the same level and that's where we can expect a sell-off today. On the 4-hour chart, Gold has formed bearish engulfing candle which is signaling the selling sentiment of investors.
Gold – 4 – Hour Chart – Support Levels ?
Gold – Trading Idea
Today, I'm looking to stay in sell below $1,287/88 with a stop loss above $1,290 and take profit at $1,282 and $1,279. Good luck guys, and have an awesome weekend!