Simple Trade in Gold as it Forms a Tight Range After the Big Fall

Gold has declined considerably in the last 2 weeks but it has now formed a range which seems easy to trade

Gold is right at the middle of the range now

GOLD made a major reversal two weeks ago at $1,346 after forming an upside-down hammer candlestick which is a strong reversing signal. The reversal came as a bit of a surprise nonetheless because Gold had been on a bullish trend since last September and it gained more pace, breaking some major resistance indicators in January and February.

But, the reversal was swift and the decline has been pretty fast in the last two weeks. Gold has lost all the gains from the last two months and has fallen back below the major resistance level at $1,300. Now, Gold is trading below $1,290 although this week the downtrend has stalled, for now.

This week Gold has traded between $1,282-3 and $1,290 more or less. So, we can see that it has formed a range this week between these two levels, which seems pretty narrow considering the big move we have seen in previous weeks. But, it’s enough to trade, since it means a 70-80 pip range.

Ranges are simple to trade, buy at the bottom with the stop below the bottom line and sell at the top with a stop above the resistance, targeting the opposite side, so don’t complicate it too much if you are trading GOLD.

ABOUT THE AUTHOR See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers