Gold Tossing The Sideways Pattern – Let’s Trade The Breakout

The commodities are stuck in narrowly mixed trading ranges as investors find no fundamental reason to trade the market. Likewise, the Gold is totally mixed in response to the US government shutdown. It has now entered a third day after the Senate disappointed to reach an agreement to fund government operations. Let’s trade the technicals…

Gold – XAU/USD – Technical Outlook

The yellow metal Gold continues to trade choppy in narrow trading range of $1,326 – $1,333. Recalling the earlier update, the bullish dragon on 30 – Min played really well.

On the 2 – Hour chart, the Gold has formed a bearish channel and now it’s trading right below bearish trendline resistance of $1,333. Overall, the technical indicators are totally mixed as Gold is expected to breakout. The RSI and Stochastics mostly of no use when the market is rangebound.

Gold – XAU/USD – Trading Levels

Support     Resistance 

1333.04    1335.44

1331.57    1336.37

1330.64    1337.84

Key Trading Level:    1,333.97

Gold / XAUUSD – Trading Idea 

The idea is to stay bearish below $1,333 with a stop above $1,335 and take profit of $1,326. Good luck!