XAU/USD - GOLD BUY 13/10/2017
Gold had broken out the previous resistance and was fixed above it. We should note that the breakout move was smooth and on small volume, but before it large volume appeared at the daily minimum and pushed the price up. So we can guess that buyers have opened longs at that level and then gold grew up. Also we need to point out the new support level 1290.20, from which the abrupt growth began. Given all the facts above, we should give preference to long positions for gold. We can enter the market after a smooth downward correction in order to get a better entry point and, as consequence, a better risk/profit ratio. A stop loss should be placed below the support. A potential of the deal is 140+ pips.
The bottom line: long positions after a smooth downward correction.
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