Gold's Breakout Becomes Fakeout - Investors Eye Trade War! - FX Leaders News

Gold’s Breakout Becomes Fakeout – Investors Eye Trade War!

Posted Wednesday, November 21, 2018 by
Arslan Butt • 1 min read

Recalling our previous update, Gold Signal in +40 Pips Profit – Let’s Manage it, it was a good idea to close our trade manually in profit as the market reversed immediately afterward and fell below $1,224. The breakout pattern turned into a fakeout.

During the Asian session today, gold prices inched up while the dollar was flat as traders eyed US-China tensions. Investors will likely shift focus to the G20 leaders’ summit later this month in Argentina where US President Donald Trump is supposed to meet with his Chinese counterpart Xi Jinping.

Gold is testing $1,224 probably for the sixth time now. Yesterday, the precious metal soared above $1,224 to place a high of $1,228, but it proved to be a fakeout. The bullish breakout of this level can open further room for buying until $1,234. Whereas, the support prevails at $1,221.

Support Resistance
1219.72 1226.92
1215.31 1229.7
1208.11 1236.9
Key Trading Level: 1222.51

Gold – XAU/USD – Trading Idea

It will be nice to stay bullish above $1,224 with a stop below $1,221 and a take profit of $1,227 and $1,229.

Good luck!

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About the author

Arslan Butt is our 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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