Trading the Double Bottom – an Update on Gold’s Trading Signal - Forex News by FX Leaders

Trading the Double Bottom – an Update on Gold’s Trading Signal

Posted Tuesday, February 5, 2019 by
Arslan Butt • 1 min read

GOLD price is steady above a double bottom level of $1,310 as investors entered long positions after prices touched nearly one-week lows in the previous session. However, the swelling appetite for riskier assets capped bullion’s gains.

Most of the focus remains on the 10-year US treasury yield which is rising for the third straight day. It’s a risk-free investment and in case of higher returns, traders prefers to invest in US Treasuries rather than in gold.

Support Resistance
1308.82 1315.53
1305.38 1318.8
1298.67 1325.51
Key Trading Level: 1312.09

On the technical side, the sideways pattern is still rolling, extending support to gold near $1,310 and resistance at $1,326. The Stochastics is just coming out of the oversold zone on the 4-hour chart, signaling a bullish bias of the market.

The idea is to stay bullish above $1,310 with a stop below $1,307 and take profit at $1,317 today.

Good luck!

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About the author

Arslan Butt // 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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