Gold formed a morning star pattern on the weekly time frame, rejecting previous support. On the daily time frame, we saw a strong bullish candle on last Thursday breaking through previous resistance level at around 1787. This gives me a bullish bias for gold in the following week. Market structure on the H4 time frame has also turned from bearish to bullish. Price is currently pulling back on the H4 and on Monday we can potentially find a setup to sell the pullback, which will be a higher risk trade given that the trend is now bullish. To be safe, my take profit target will be at the previous H4 support at around 1791. Let's hope price doesn't drop straight into support during market open.
Trade closed: target reached:
140pips completed on Monday.