Oct. 4 – Gold Hits 40 Pips Profit – What’s Next? - Forex News by FX Leaders

Oct. 4 – Gold Hits 40 Pips Profit – What’s Next?

Posted Wednesday, October 4, 2017 by
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 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!

 
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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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