Gold has recovered well from the flash crash a couple of weeks ago, and we are expecting a continuation into the 1830 resistance initially.
Gold has also set up an inverse head and shoulders structure suggesting a move to the upside will occur. The fundamentals support higher gold prices – The FED signalled they would continue asset purchases until year-end (money printing), depending on economic data.
GOLD 4 Hour chart
Gold has been consolidating between the 1820 resistance and 1810 support zones. The trend is clearly to the upside with strong impulsive waves.
GOLD 15 Min Chart
There is a fairly symmetrical inverted head and shoulders structure with the neckline at 1820.
Trade Setup: BUY market execution, current price 1815, stop loss 1803 and take profit 1830.
Stop loss: 120 pips
Take profit: 150 pips