Gold Bulls On Hold, Multiple Spinning Top Breaking The Bullish Sentiment
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.
Fundamentals Outlook
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.
Technical Outlook
- 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.
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