Gold Breaks Ascending Triangle Pattern – Risk Off Sentiment
Arslan Butt • 1 min read
The precious metal GOLD trades bullish due to anxieties about a potential decline in China’s economic growth amid an ongoing trade war and crashing equities. The worse than expected US nonfarm payroll is adding fuel to the fire as it’s raising concerns about the next rate hikes from the US. Investors seem to trade the risk-off sentiment, therefore, we are also supposed to follow them to catch a swing trade. Buckle up for it.
Global stock markets continue to trade bearish as investors focus on the US-China trade war and, most importantly, the Parliament Brexit Vote. Thus, funds are moving from the stock markets to safe-haven assets such as bullion (gold and silver) and the Japanese Yen.
Ascending Triangle Pattern – Breakout
During the previous week, gold came out of the ascending triangle pattern which is now extending a significant support near $1,236. Gold may find a solid resistance at $1,254 and $1,258 today.
Key Trading Level: 1239
GOLD – XAU/USD – Trading Plan
On the daily timeframe, gold has formed a bullish engulfing pattern which is likely to extend the bullish trend. So, I will be looking to stay bullish above $1,242 to target $1,258. The market may exhibit thin volatility but we need to stay patient to get our target price.