Gold Completes 50% Retracement - What’s Next? - Forex News by FX Leaders

Gold Completes 50% Retracement – What’s Next?

Posted Wednesday, October 18, 2017 by
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 RetracementGold – 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.

 
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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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