Gold coiling up ahead of another bullish breakout?
Gold has been coiling under the record highs for a while now, constantly testing and bouncing from uptrend support over the past two weeks. While momentum indicators have yet to turn bullish, the upward bias in the price suggests we should be on alert for a bullish breakout.
Traders keen to take on the long trade have two potential options.
The first is to buy here with a stop below the uptrend, possibly just under $2500. To make the trade work from a risk-reward perspective, you’d need to target a move beyond the record high of $2531.81. The second option is to wait for the potential breakout above the record high. If it occurs, you could buy with a stop below the level for protection.
As we’re talking uncharted territory, round numbers may provide potential targets; think $2550 and $2600. It’s only a line running from two former highs, but keep an eye out for possible resistance around $2567.
Good luck!
DS
Traders keen to take on the long trade have two potential options.
The first is to buy here with a stop below the uptrend, possibly just under $2500. To make the trade work from a risk-reward perspective, you’d need to target a move beyond the record high of $2531.81. The second option is to wait for the potential breakout above the record high. If it occurs, you could buy with a stop below the level for protection.
As we’re talking uncharted territory, round numbers may provide potential targets; think $2550 and $2600. It’s only a line running from two former highs, but keep an eye out for possible resistance around $2567.
Good luck!
DS
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