Good morning team,
We are changing our stance on gold due to numerous Doji candles on the daily time frame. Gold has tried on a number of occasions to break lower however buyers are pushing the market straight back up.
GOLD Daily Time Frame
There is a key trend line providing support, the market is failing to break below the trend line suggesting it is possibly too early for a break lower.
On the daily time frame you can see a number of Doji candle stick patterns, and the price is now breaking above a negative trend line.
GOLD – 1 Hour Time Frame
There is potentially an inverted head and shoulder formation playing our here. The neck line can be found at 1745, a break above the level will suggest a move higher.
We are now looking to buy the metal with our stop loss below the inclining level of support.
Trade Setup: BUY -Market execution, current price 1727, stop loss 1700 and take profit target 1780.
Stop loss: 270 pips
Take profit: 530 pips