Choppy Trading In Gold – US Midterm Elections Results Are Out!
Gold continues to trade sideways in a narrow trading range of $1,224 – 1,236. The bullish price action is likely linked with the plunge in the US dollar. The Greenback is in selling pressure across the board in Asia as Democrats seem to be gaining ground in Florida.
As per the recent news, the Democrats win back House, Republicans hold Senate.
GOLD – XAU/USD – Bullish Flag Fakeout
On the 2 – hour chart, gold has completed 38.2% retracement at $1,226 and we may see a bounce in gold prices. As discussed in our previous analysis report, gold has formed a bullish flag pattern which was signaling chances of a bullish breakout and it actually broke out of the range.
Fortunately, we were able to come out the market at $1,232 as gold took a bearish reversal later. So, the bullish flag breakout turned into a fakeout.
Support Resistance
1221.67 1234.1
1216.41 1241.26
1203.98 1253.69
Key Trading Level: 1228.84
Since the Midterm elections are mixed, we may see choppy trading in gold. So, the idea is to stay bullish above $1,228 and bearish below $1,236.
Good luck!
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