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