Gold Bulls On Hold, Multiple Spinning Top Breaking The Bullish Sentiment
Arslan Butt • 1 min read
Gold caught fire over the fundamentals, distorting the trades of technical analysts. Thankfully, we were not in the trade. Anyways, today the technical indicators are lining up for a hot trade setup.
In case you are wondering what drove gold crazy yesterday, check out FX Leaders update “Gold On Fire, Stocks Down, Risk Off Sentiment – Who’s Behind This?
Today, the economic events from the United States may get us some good trades in the Gold.
- PPI m/m – The Bureau of Labor Statistics will release the producer price index at 13:30(GMT).
- Core PPI m/m – It’s expected to be 0.2% vs. 0.3% in the past, whereas, the higher figure will support the US dollar.
- Unemployment Claims – You should monitor the jobless claims at 13:30 (GMT), although these aren’t expected to surprise the market.
- At the moment, the yellow metal Gold is holding right below the solid resistance level of $1,326.
- The 50- periods EMA is supporting the Gold above $1,310. However, you can see the divergence between EMA and CMP (current market price).
- The Stochastics are in the overbought zone and the spinning top on the daily chart are supporting the selling bias for the Gold.
Gold – 240 – Min Chart
Gold // XAUUSD – Trading Plan
Today, the $1,316 is a good level to monitor. Below this, I will be looking to enter a sell position with a stop above $1,319 and take profit of $1,311 and $1,307. Whereas, Gold will stay bullish above $1,316 until $1,322 and $1,326. Good luck.