Gold Testing Double Bottom – is it Good Time to Get in?
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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