Top 2 Reasons to Stay Bullish On Gold
Arslan Butt • 1 min read
What’s up, traders?
I hope you are enjoying our forex trading signals which are hitting take profits one after another. Today, Gold is highly dependent upon technical indicators with the absence of economic events from the US. Check out the top two reasons to stay bullish on Gold today…
Gold – XAU/USD – 50 Periods EMA
Looking at the 2-hour chart, Gold is trading above the 50-period EMA. This indicates the bullish bias of traders. Although, the 50-period EMA prevails near $1,342 which means technically Gold should be trading near the $1,342 level. That’s the only reason I’m not entering a buying position in Gold. The odds of a bearish breakout are pretty high. Check out FX Leaders EMA Trading Strategies if you are interested in learning about EMA trading.
Gold – XAU/USD – 50% Fibonacci Retracement
Secondly, overbought Gold has already completed a 50% retracement above $1,347 whilst RSI is holding in the oversold zone. It means that, sooner or later, the bulls will jump in to buy the cheaper Gold. If the market breaks below $1,347, Gold can plunge to $1,342 which is where I would love to buy the yellow metal.
Gold – XAU/USD – Trading Idea
The idea is to stay bullish above $1,347 and $1,342 with a stop below $1,338 and take profit of $1,356. Good luck!