Gold Completes 50% Retracement – What’s Next?
Arslan Butt • 1 min read
What's up, fellas. Hope you enjoyed our previous update on Oct. 16 – A Potential Trade Setup In Gold. The precious metal plunged after testing our target level. Here is what I'm looking at today.
Quick Technical View
- Gold plunged dramatically but finally gained some support near $1,281. Let me break down the technical aspects of the Gold.
- Gold has completed the 50% Fibonacci retracement at $1,281. That's the level where market pulls back.
- Looking at the momentum indicators, the Gold is oversold in the 4-hour chart. The RSI and Stochastics are holding below 20. It's also supporting the bullish retracement now.
Gold – 4 – Hour Chart – Fibonacci Retracement
- The leading indicator 50 – Periods EMA is ready to provide resistance at $1,291. We can expect a bearish pullback.
- For the moment, the Gold is in a very narrow range with a lower range of $1,287 and upper range of $1,292. The breakout will decide the further trend.
Gold // XAUUSD – Trading Plan
Today, the idea is to stay bearish below $1,292 with a stop loss above $1,295. On the other hand, break below $1,287 can give us an opportunity to sell for $1,284 with 20 pips stop. Good luck fellas, keep following for more updates.