Gold Signal – Top Two Reasons To Trade Gold Today
Arslan Butt • 1 min read
What's up traders? Yesterday, Gold offered the remarkable trade opportunity and hit our target of $1,287 suggested in our update Gold Trade Idea. In case you missed the opportunity, don't worry. I have something for you. Check this out …
Fundamental Overview – Dovish FOMC Meeting Minutes
The Federal Open Market Committee (FOMC) meeting minutes came with the biggest drop in the dollar in a month which wasn't a surprise. In our previous update on Gold, the Fed December rate hike sentiment was already "priced in." Thereby, we were highly expecting a flow of investments from the dollar to Gold.
Gold // XAUUSD – Technical View
Looking at the 4-hour chart of Gold, the metal has tested the bearish trend line resistance at $1,294. It's something which we discussed a couple of days ago in our updates.
If we zoom in the 4-hour chart, the bearish reversal candle just halted the bullish trend in Gold. Right after the bearish reversal candle, the Gold formed a bearish Marubozu candle which signifies that the bulls are dominating the market.
Gold – 4-Hour Chart – Bearish Trendline
Lastly, the Gold has entered the overbought zone. Stochastic is holding above 80 which means it's worth it to catch the bearish retracement in Gold.
Gold // XAUUSD – Trading Plan
The idea is to take a sell entry below $1,290 with a stop above $1,294 and a take profit of $1,286 and $1,283. Good luck!