GOLD Trading Setup
Today’s session was marked by higher volatility. GBP surged on a stunning PMI figure. Gold tested a new low before returning back above the support level below. Oil steadied on Saudi seeing OPEC’s “common position”.
The daily trading setup from yesterday did not really reveal as strong as expected. You might have been stopped on this one. The markets are preparing for the NFP’s number tomorrow and traders are pulling themselves out of positions. The calm before the storm- dollar remains king before the NFP. The GBPUSD trading setup from last week did really played out well today after the PMI data. We are waiting to see the number and hopefully it is a good one…
GOLD Trading Setup– Today’s price action setup is coming from the GOLD market. I have been waiting for a good trading setup from this market for a long time now. The only questionable part is whether it will be reasonable to trade this setup before the NFP. Some will say- price action stands above fundamentals. Others will reproach this type of comments and will be more cautious when it comes to live trading. In my view, an approach that is a combination of both is the right one. But who knows what future holds for us. We can only speculate reasonably.
The daily trading candle is a bullish engulfing. Why I said I have been waiting for this sort of pattern is because it did form just around the support level marked on the chart. This brings more significance and from a price action point of view is a great trading pattern. The NFP data is the only piece making the puzzle not complete, but sometimes taking risks pays back. In case you want to trade this setup, I will be looking to enter in a long trade at around 1310. My stop loss would be placed just under the level of 1300. My first price target is the level of 1335. My secondary price target is the level of 1375.