Gold Testing Double Bottom – is it Good Time to Get in?
The investors focus stays on US indices as earnings reports are likely to play along. The risk on sentiment is directing most of the...
The yellow metal continues to lose its haven appeal and drop on Tuesday, touchingnear more than one-week lows in the London Session. Positive economic data from major economies faded the risk appetite, softening demand for safe-haven bullion.
On the other hand, investor focus stays on US indices as earnings reports are likely to play along. The risk-on sentiment is directing most of the investments into the US dollar and the stock markets. Gold buyers, on the other hand, are suffering a huge sell-off.
Support Resistance
1283.54 1291.15
1279.26 1294.48
1271.65 1302.09
Key Trading Level: 1286.87
From a technical perspective, the double bottom support of 1,281 is likely to underpin gold prices. In fact, we may also see some pullback above this level.
Can you see a huge gap between the 50 periods EMA and gold current market prices? It’s almost a $20 gap which apparently shows the oversold scenario. So there are good chances of a bullish retracement above 1,281.
GOLD Trading Signal
I will be looking to take buy positions above 1,280 with a stop loss of 1,276 and take profit of 1,287.
Good luck!
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