Gold’s Bullish Butterfly Making Us +40 Pips – Update on Gold Signal
Arslan Butt • 1 min read
A couple of days ago, Team FX Leaders spotted a swing trade setup in gold, and it seems to be doing pretty well. As of now, gold has traded in line with our forecast, helping us secure +40 pips. But the market is lacking volatility on the verge of NFP figures on Friday. Most of the traders prefer to stay out of the market ahead of this market-leading data.
Technical Analysis of GOLD
- Gold formed a bullish butterfly pattern that initiated its C to D wave from $1,324 and completed it around $1,285.
- The oversold RSI suggested high odds for a bullish reversal as the 200 periods moving average was left at $1,307, far away from the CMP (current market price).
- Short term support remains around 1280/85 with resistance coming in now at 1300. On the daily chart, resistance comes in around 1320 with longer-term support level now at 1255.
Gold – 4 Hour Chart
Gold – Trade Idea
Consider staying bullish above $1,285 with a stop loss below $1,280 and take profit of around $1,295 and $1,299.