Gold – Three Things to Know About Gold Today
Gold has completed 50% retracement at $1,286 and it's also closing candles below the same level. Watch out a trading plan.
It’s been a few days now, we haven’t heard any controversial statements, either from the United States or from China. In fact, we don’t even have any high impact economic event from the US which can impact gold valuation. As a result, the precious metal is trading on a technical basis today.
Three Things To Know About Gold Today
1) Looking at the 4-hour chart, we can see a bullish momentum in gold but it’s taking a pause below $1,286. If you recall, it’s the same level which provided strong support to gold for almost a week. However, gold violated this level on Friday and now the same level is likely to work as a solid hurdle for gold.
2) Gold has completed 50% retracement at $1,286 and it’s also closing candles below the same level. One of the candles is also bearish engulfing, which is supporting a bearish bias of traders for gold.
3) Thirdly, the RSI and Stochastics are in an overbought zone which means investors will be waiting for a bearish retracement before placing bullish bets in gold.
Gold – 4 Hour Chart
Support Resistance
1279.94 1288.01
1274.69 1290.83
1266.62 1298.9
Key Trading Level: 1282.76
Gold // XAUUSD – Trading Plan
Consider staying bearish below $1,286 with a stop above $1,287 and take profit around $1,280. While bullish entry will be preferred above $1,287 today.
Good luck!
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