Good morning team,
Today we are looking at gold as it has broken above a negative trend line suggesting we may see further upside on the metal. The USD weakness supports stronger metal prices.
GOLD – 4 Hour Charts
Major support can be found at 1670 which may also be a the neck line on a head and shoulders formation. The market is now breaking to the upside of a negative trend line suggesting we may see the metal continue moving higher.
We are now looking to buy gold targeting the left shoulder line at 1732.
Trade setup: BUY GOLD – Market execution (current price 1700), stop loss 1683 and take profit 1732.
Stop loss: 170 pips
Take profit: 320 pips