Gold’s Descending Triangle Breakout – Decline Continues - Forex News by FX Leaders

Gold’s Descending Triangle Breakout – Decline Continues

Posted Tuesday, April 23, 2019 by
Arslan Butt • 1 min read

GOLD prices are on course for a fifth straight weekly decline, as recent economic data drove investors towards riskier assets, where the financial data from the Chinese economy plays a significant role. Moreover, strong equities and EPS (earning per share) session presented a risk-on backdrop for investors, extending support to the stock market indices.

On the technical side, gold has violated the descending triangle pattern at 1,284. The closing of daily candle below 1,284 is adding to the bearish bias of traders. We may see further sell-off below this level.

GOLD can find support around 1,271 and 1,265. While as per descending triangle breakout, the precious metal can also lead towards 1,250 this week.

Support Resistance
1271.37 1278.13
1268.86 1282.38
1262.1 1289.14
Key Trading Level: 1275.62

So, the idea is to stay bearish below 1,280 with a take profit of around 1,270 and 1,265.

Good luck and trade with care!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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