After a huge wave down from 1294 gold is now not only reaching its lower range but also the 72 EMA on the daily time frame. This will touch this in the 1245-1248 region. Usually when a 72 ema breaks the price continues to move for a bit in that direction. As you can see sometimes the price also bounced back from the 72 ema instead of breaking it.
By the look of the Stoch Rsi indicator its likely that Gold will bounce back from the 72 EMA. With already being in the oversold zone there isnt enough selling pressure left to fuel a good break. Most strong breaks of the 72 EMA where done when the Stoch Rsi was in the middle and showing a strong move.
Today a bullish FOMC might make gold a bit weaker, that would be a nice entry to buy. Since this is the daily time frame I advice to not open a buy in Gold directly but wait for the daily close of wednesday. If it closes around the 1245 region a buy position is in place.
Take Profit targets 1270-1290-1320
stop loss 1236
By the look of the Stoch Rsi indicator its likely that Gold will bounce back from the 72 EMA. With already being in the oversold zone there isnt enough selling pressure left to fuel a good break. Most strong breaks of the 72 EMA where done when the Stoch Rsi was in the middle and showing a strong move.
Today a bullish FOMC might make gold a bit weaker, that would be a nice entry to buy. Since this is the daily time frame I advice to not open a buy in Gold directly but wait for the daily close of wednesday. If it closes around the 1245 region a buy position is in place.
Take Profit targets 1270-1290-1320
stop loss 1236
Trade active:
Current daily candle touches the range. Buy entered. Expecting a bounce back during the asian and european session.