Oct. 4 – Gold Hits 40 Pips Profit – What’s Next?
Arslan Butt • 1 min read
What’s up fellas. Yesterday, our forex trading signal on Gold helped us secure nearly 40 pips in Gold. Today, Gold is highly depending upon the high-impact economic coming out from the United States. Aside from fundamentals, I'm seeing the technical side is also lining up for a potential trade setup.
Gold Is Supported – Why?
In the previous post, I discussed a sad event in Las Vegas which shook the global markets spreading a "Risk-off" sentiment. Do you think Gold is supported due to this event? Well, yes a bit of the support is due to Las Vegas turbulence. But the real player is ADP Non-Farm Employment Change which is forecasted to be released at 131K compared to 237K. We call this, the market is "Pricing In" the event.
Gold – Technical View
There are plenty of technical indicators lining up for the bullish trade in Gold. Let's break them down.
Gold – 2- Hour Chart
- On the daily chart, the recent candle of Gold closed as the spinning top which is followed by a bearish momentum. It means, the Gold bears are not confident to sell anymore and buys entered the market here.
- Gold formed a double bottom at $1,269 and closed a spinning top right above it. This strengthens the $1,269 as a support zone.
- Stochastic and RSI are in the oversold zone. Which signifies that entering a sell here can be risky as the investors may take profit.
Gold Trading Plan
In this scenario, we need to wait for the U.S. economic events. But just for the sake of a rough idea, Gold is likely to stay bullish above $1,271 today and may target $1,276 and $1,280. Good luck and trade with care!