Gold Violating Bullish Shark – Quick Update on Trading Signal
Arslan Butt • 1 min read
The bearish trend in the yellow metal is unstoppable as investors have started moving to the U.S. dollar. Despite the strong technical reasons to stay bullish, investors are not willing to go long in the safe haven asset Gold. Earlier today, we opened forex trading signal in gold. Let’s see how it’s doing for us…
On Monday, gold gained slight support after an issue arising between Israeli troops and Palestinian protesters on the Gaza border. Nevertheless, traders are overlooking the geopolitical tensions and focusing on the recent gains in the buck. Thereby, driving bears to gold.
Technical View – Bullish Shark Violated
On the hourly chart, gold formed a bullish shark pattern which completed the BC wave at $1,325 and CD wave at $1,310. We were eyeing this level to go long upon certain confirmations. But, the setup is already violated as gold is breaking below the $1,310 support zone.
Below this ($1,310), we can expect a bearish correction in gold until $1,305. The leading indicators are in the selling zone and in support of the selling bias.
Gold // XAUUSD – Trading Idea
For now, we need to wait for our trading signal to hit the target $1,307 whereas our stop is at $1,314. Good luck!