Gold Stuck In an Asymmetric Triangle – Breakout Awaited

The gold prices are stuck in a narrow trading range of $1,287 – $1,294 and has the greenback hovering below its 2018 high. Additionally, a drop in the U.S. stock indices and rising Treasury yields are collectively impacting the prices of safe-haven assets. In this scenario, where fundamentals are causing indecision among bulls and bears, the best is to trade technical setups. Here’s one for today…

Gold – XAU/USD – Technical Outlook

Highlighting the technical side, the leading indicators, both the RSI (above 80) and Stochastics (at 74), are indicating overbought conditions, though, so sellers could return from here and attempt to break out to the bullish trendline.

On the hourly chart,  the yellow metal is stuck in an asymmetric triangle which is supporting gold near $1,289 along with a resistance near $1,293. Soon we are going to see a breakout in an asymmetric triangle pattern, perhaps, on a lower side. I’m saying this because the leading indicators have started coming out of the overbought zone.

Gold – Hourly Chart

However, on the daily timeframe, gold has formed a candlestick pattern doji. This pattern often imposes a threat to sellers as it signals a neutral sentiment of investors. Doji followed by a sharp selling which indicates that the sellers are exhausted and we may see bulls buying the cheaper gold.

Gold – XAU/USD – Trade Idea

Today, the idea is to stay bearish below $1,291 with a stop above $1,293 to target $1,286. The violation of $1,286 can lead gold towards $1,281. Whereas, gold can remain bullish above $1,291. Good luck.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Related Articles

Gold Weekly Outlook: $3,318 Pivot in Focus as Fed Signals and Data Loom

4 hours ago

Save

Forex Signals April 18: Earnings on Good Friday Can Send DJIA Up or Down Under

1 day ago

Save

WTI Crude Jumps 3.5% to $64.68 Amid Iran Sanctions and OPEC+ Cuts

1 day ago

Save

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments