Oct. 5: Gold Hits $1,280 Target – Ready for New Trade?
Arslan Butt • 1 min read
What’s up fellas. Hope you enjoyed another phenomenal Gold trade idea suggested on Oct. 4 – Gold Hits 40 Pips Profit – What’s Next. The precious metal fell right after testing our daily target of $1,280. Today we have several speeches from the officials of Federal Reserve, so the volatility can be unpredictable for Gold and Dollar.
Gold // XAUUSD – Technical View
The technical side isn't as clear as it was yesterday. It seems like the big fishes are staying out of the market ahead of the most awaited event, the Non-farm payroll (NFP) which is expected to be released tomorrow on Friday. Nevertheless, we can trade the choppy sessions. Let's break down the key technical drivers.
Gold – Daily Chart – Trendline Support
On the daily chart, we can see a Blue bearish trendline which worked as a resistance for Gold in past. But now, it's supporting it at $1,267/68. Besides this, the Gold has formed a double bottom pattern above $1,269 and closed a spinning top right above it. It's strengthening the bullish bias for the Gold.
But I'm more concerned about yesterday's candles which is a bit confusing. It's half bullish and half bearish, signifying the indecision among bulls and bears. The leading indicators Stochastic and RSI are in the oversold zone which is signaling bulls may dominate soon.
Gold // XAUUSD – Trading Plan
Today, I would like to capture a buying trade above $1,269/70 to target $1,276 with a stop below $1,265. Gold has a solid resistance at $1,276. Good luck and trade with care!