Gold Steady Over Bullish Channel’s Support – Do We Have a Trade Here?
Arslan Butt • 1 min read
On Friday, GOLD continues to trade with bearish momentum around 1,285. During the previous session, gold plunged sharply by 0.8%, its most significant one-day percentage decline in a month after risk sentiment recovered. Moreover, a surprising jump in the Philly Fed Manufacturing Index also weighed on gold prices.
The economic calendar is a bit light today, however, the US Prelim UoM Consumer Sentiment remains in highlights as it’s a significant fundamental and can drive some action in the bullion market.
On the technical side, gold consolidates around 1,285 support, extended by a bullish channel. The 200 periods moving average is also staying at the same level, extending support to gold at 1,284.85 area. Leading indicators, RSI and Stochastic, hold under the oversold zone, signaling high odds of a bullish retracement.
The bearish breakout of 1,285 can trigger further sell-off until 1,276 and 1,272. While resistance stays around 1,292 and 1,299 today.
Key Trading Level: 1289.76
So, 1,285 is a crucial trading level on Friday and the idea is to stay bullish over 1,285 and bearish below the same to target around 50 pips on both sides.