Disclaimer: All information shared is solely for learning purpose and it does not constitute to a buy/sell call.
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Gold trading plan:
As mentioned in last week’s post, there is a small possibility for Gold to have a deep pull back to back test resistance turned support level and we have seen Gold executed the pull back. It would be interesting to monitor if this support can hold in the upcoming week. If it does, the confirmation would be completed when when Gold goes above 1,936. Do keep a lookout for that level.
In case if the support is not holding, it would likely to drift back to 1,850 range.
Similar to Weekly chart, Gold is at the lower end of the resistance turned support in daily chart where it would be critical for the support to hold up. From the daily ATR, we can see that Gold may fluctuate up to $30 in a given day and hence it is important to size your portfolio accordingly. We can see that 1,888 range would be a critical level for support to be defended (+/- 3-5 margin of error).
All in all, Weekly, Daily & 4 hours are all showing the upcoming theme would be for Gold to defend the resistance turned support and if it is defended, Bullish confirmation would happen.
As no trading/investments are guarantee sure win, please do your own due diligence and always look at risk to reward and trade with guaranteed stop loss (private message me to know more).
Past article written on how to use guaranteed stop loss; do private message me in Telegram for me to refer you to IG.Regards,