Daily Price Outlook
- Gold displayed a strong bullish trend, surpassing the $1,913.15 mark and approaching a significant resistance at $1,917.50, further solidified by the alignment of the 50-day EMA.
- A potential breach of either the $1,913.15 support or the $1,917.50 resistance will dictate the subsequent price trajectory, with key targets at $1,890.00 and $1,929.00 respectively.
- The day's anticipated trading range is between $1,900.00 (support) and $1,930.00 (resistance).
Gold commenced the trading session exhibiting evident bullish momentum, surpassing the $1,913.15 threshold and nearing the retest of the previously breached neckline of the head and shoulders pattern, which now stands as a pivotal resistance at $1,917.50. It's noteworthy to mention that the 50-day Exponential Moving Average (EMA50) aligns with this resistance level, reinforcing its significance and suggesting the potential for a renewed downtrend.
Given the current scenario, a prudent strategy would be to adopt a wait-and-see approach until there's a decisive breach of one of the critical levels mentioned, thereby offering greater clarity on the impending trajectory. A descent below the $1,913.15 support could indicate the reassertion of the bearish trend, with subsequent objectives at $1,890.00 and then $1,873.50.
Conversely, a breakthrough of the $1,917.50 resistance may negate the adverse implications of the pattern, paving the way for gold to ascend and target gains commencing at $1,929.00. The anticipated trading bandwidth for the day is projected between a support of $1,900.00 and resistance at $1,930.00.
GOLD (XAU/USD) - Trade Idea
Entry Price – Buy Above 1912
Take Profit – 1925
Stop Loss – 1900
Risk to Reward – 1: 1
Profit & Loss Per Standard Lot = +$1300/ -$1200
Profit & Loss Per Micro Lot = +$130/ -$120
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