Gold Trades in a Bullish Flag – Buckle up for a Breakout Trade!
During the Asian session, the yellow metal gold inched slightly higher to trade at $1,230. As you know, the volatility remains low ahead of the US congressional elections. The metal trades within a narrow range of $1,228 – $1,231 as gold has formed a bullish trade setup.
GOLD – XAU/USD – Bullish Flag
On the 2-hour chart, you can see a bullish trend in gold from $1,216 to $1,234. But later the market entered the overbought zone and triggered the profit taking ahead of the US midterm elections.
For now, gold has completed 38.2% retracement at $1,226 and we may see a bounce in gold prices.
Most importantly, gold has formed a bullish flag pattern which is signaling the chances a bullish breakout and further buying until $1,238.
Support Resistance
1226.81 1234.38
1223.07 1238.21
1215.5 1245.78
Key Trading Level: 1230.64
Traders, the market is likely to exhibit thin trading volume but we may also experience a sudden volatility due to US Midterm Elections.
Let’s play safe!
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