Gold Testing Double Bottom – Is it Good Time to Jump in? - Forex News by FX Leaders

Gold Testing Double Bottom – Is it Good Time to Jump in?

Posted Wednesday, October 31, 2018 by
Arslan Butt • 1 min read

The precious metal GOLD eased on Wednesday, sliding off a more than the three-month peak during the New York session, urged by a strong dollar. Especially after the US Conference Board reported a consumer confidence of 137.9 vs. the forecast of 136.3. The unexpected jump in the US household sentiment says a lot about economic growth, which, as a result, is being reflected in the demand for dollar.

Looking at the technical side, gold is holding right above the strong support level of $1,216. The same level supported gold on October 18, which makes it a double bottom level.

Gold – 4 -Hour Chart

Zooming in on the 4-hour chart, the immediate candle is half bearish and half bullish, demonstrating that the buyers are looming around $1,216. The trend is clearly bearish, however, the market can show us a slight retracement until $1,220 to $1,223 before it continues its bearish trend.

Support Resistance
1218.98 1227.96
1214.97 1232.93
1205.99 1241.91
Key Trading Level: 1223.95

GOLD – XAU/USD – Trade Idea

Considering the technical indicators, we opened a buying position above $1,216 to catch a quick retracement until $1,220 with a stop below $1,213. On the flip side, selling is preferred below $1,223.

Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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