Trading plan for Gold for May 28, 2019

Tags: 

Technical outlook:
Gold seems to be breaking out of triangle consolidation as presented on the 4H chart here, which might terminate around $1290.00/1291.00 levels. The yellow metal has been pushing sideways since several weeks now, and we might see yet another spike towards $1290.00 levels, before it resumes lower.

Ideally, prices should remain below $1310 levels, if the triangle consolidation holds true. Furthermore, a break below the consolidation support line, which is passing through $1270/71 levels around this time, would accelerate the drop towards $1250 and $1230 levels. Trading point of view, it is safe to initiate short positions between $1285/90 levels, with risk just above immediate resistance at $1303 levels, targeting lower. If prices manage to break above $1303, we would re-look the wave counts and trade setups. Also note that fibonacci 0.618 resistance is seen passing through $1290 levels, hence a bearish reversal remains probable there.

Trading plan:

Short @ 1285/90, stop @ 1304, target @ 1250/30

Good luck!

Trading plan for Gold for May 28, 2019