goldTrading Outlook

Gold: daily outlook

Apparently gold seems to be rolling down

Though it’s been showing some consolidation. however, on a technical perspective, it is looking more vulnerable

Finding Reasons for sell!

As you can in the chart below it has broken down the 1479 important levels.

Due to this, we expect it will go down further, however, on an upper side this also could be the play as an important resistance zone.

As a result, we will have to wait to retest 179 level or near about it where we’d comfortable to sell.

Therefore you may put pending order of sell around this in technical perceptive

Target!

For getting targets, you may draw Fibo retracement from upward to downward as you can see in the chart below

Subsequently set target either 121 or 141 percent locate at 1436@1423 respectively

Stop-loss!

As far as stop-loss is concerned you could choose the previous upward pivot. it maybe 1493 or 1516 respectively. As shown in the chart below

Risk Vs Reward

Now you have to Evaluate your risk-reward. in this proposed trade you have risk from 1476 to 1493 & from 1476 to 1516.

Whereas your reward is from 1476 to 1436/23.

Isn’t it good risk/reward ratio please evaluate by yourself

Alternative scenario!

Break out 1473 would open the path of 1516&1536.


Finally, I hope the above said description of the strategy and levels would pave the way for decision making. However, if you have any questions/query please let us know.

Have a Happy Trading!!!