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Gold: trading plan for today

19 February 2024 199
Gold: trading plan for today

Over the last 3 months, the gold prices have been moving in the range of 1980–2080 dollars per ounce, reaching the upper and lower boundaries of the sideways channel.

Gold: trading plan for today - Photo 1

The main drivers of the metal price movement are geopolitics, along with the US Fed representatives' decisions and comments regarding the interest rate.

The tensions in the Middle East are gradually easing amid ongoing negotiations and a temporary truce between the two sides of the conflict. At the same time, on February 1, the US Federal Reserve once again didn't cut the interest rate, leaving it at the same level of 5.5%. The Fed's next meeting will be held in the second half of March.

Considering the above-mentioned facts, it means that no significant spikes in volatility are expected in the near term. A sharp rise or fall in gold prices is unlikely, and the sideways movement within the above-mentioned range will probably continue.

On top of that, there are no important macro statistics to be published today.

Technical Analysis Overview

The technical picture for the gold prices is the following: on February 14, the price approached the lower limit of the range and reversed towards the upper limit, forming a "hammer". The pattern was confirmed the next day. At the moment, the gold prices are rising, so it's highly probable that the growth may continue, reaching the upper limit of the channel.

Gold: trading plan for today - Photo 2

Trading plan:

Buy gold at the current price with short-term targets Take Profit 1 = 2,030, Take Profit 2 = 2,040, Take Profit 3 = 2,050 towards the medium-term target — the upper limit of the range at 2,080.

We secure the position with a Stop Loss = 2,010.

Successful trading to everyone!

This content is for informational purposes only and is not intended to be investing advice.

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