Buy Gold at support! $2400 target??!
Here we see Gold has been trading around major support levels on the weekly chart from 1760.
Price is oversold on the weekly charts at support so a great time to buy in an uptrend. Looking more zoomed in on the daily charts we can see price is oversold on the daily stochastic indicator as well, the MACDH indicator has just turned a buy signal and the 200 period daily moving average is rising with price trading below it. Daily RSI has put in a higher high with price also putting in a higher high- all good signs of this swing low being the low.
We also have a falling wedge reversal pattern on the hourly charts which indicates price will attempt to move upwards
All this price action confluence looks like another low risk high probability medium term trade to take with a stop loss below the prior low at around 1755.
We can also see a pennant formation in the overall uptrend (white lines) which indicates price will likely at least continue upwards and try to break out above 1948. If the breakout is sustained we could see a move to the extension target of around $2400. So great profit potential here.
One note of caution is that the US dollar index (DXY) has strengthened in the past week but I don't expect this to continue for too long with the daily and weekly moving averages on that chart being so bearish and all the inflationary pressures for the next few years with Covid-19. I'm looking to take DXY long profits very soon and keep adding to gold longs.
This seems like a great place to get in today, leave a like if you agree please and follow this post for regular updates on the trade.
Price is oversold on the weekly charts at support so a great time to buy in an uptrend. Looking more zoomed in on the daily charts we can see price is oversold on the daily stochastic indicator as well, the MACDH indicator has just turned a buy signal and the 200 period daily moving average is rising with price trading below it. Daily RSI has put in a higher high with price also putting in a higher high- all good signs of this swing low being the low.
We also have a falling wedge reversal pattern on the hourly charts which indicates price will attempt to move upwards
All this price action confluence looks like another low risk high probability medium term trade to take with a stop loss below the prior low at around 1755.
We can also see a pennant formation in the overall uptrend (white lines) which indicates price will likely at least continue upwards and try to break out above 1948. If the breakout is sustained we could see a move to the extension target of around $2400. So great profit potential here.
One note of caution is that the US dollar index (DXY) has strengthened in the past week but I don't expect this to continue for too long with the daily and weekly moving averages on that chart being so bearish and all the inflationary pressures for the next few years with Covid-19. I'm looking to take DXY long profits very soon and keep adding to gold longs.
This seems like a great place to get in today, leave a like if you agree please and follow this post for regular updates on the trade.
Trade active:
Looks like a great inverse Head and shoulders forming in gold. Lets see if we can move back up to test the neckline
About me: I'm a retail day trader (trading since 1993). Most ideas here are for short time frames and become profitable quickly. I take profits fast as things change fast. 1-2-1 mentoring sessions available.
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