GOLD – SELL – 29th May 2020

GOLD – SELL – 29th May 2020 (Closed)

Good morning team,

USD Index is trading on a major support line, we may see a lift higher from this level as sellers begin to take profit.

Trump has suggested he is going to provide a speech tonight during the US session on the China US situation. This suggests we may see a some strength returning to the safe havens today (USD and JPY.

GOLD is creating lower highs and lower lows suggesting a bearish trend. In the long term we are bullish on gold, however over the short term if we see strength back in the USD, gold may see further pull backs.

Gold Technical Analysis

There is a negative trend line providing resistance, a break above will invalidate this setup, keep that in mind.

There is potentially a head and shoulders formation in play here. Generally speaking if the head and shoulders formation is correct, we will see a break lower than the neck line. The risk to reward on this set up is great when you are looking at target 2.

Trade setup: SELL Market execution, current price 1719, stop loss 1731 and take profit 1690 -1680.

Stop loss: 120 pips

Take profit: 290-390 pips

Trade Setup
SELL - Market Execution

Entry
1719

Take Profit
1690

Stop Loss
1731