Trading plan for Gold for April 20, 2021

Trading plan for Gold for April 20, 2021

Trading plan for Gold for April 20, 2021

Trading plan for Gold for April 20, 2021

Technical outlook:

Gold might have completed its corrective rally that had begun since $1,676 lows around March 08, 2021. The yellow metal has produced a complex corrective rally consisting of 3 waves. The first wave carried prices through $1,755, followed by a drop towards $1,678 levels respectively. The final leg has reached up to $1,790 before turning lower again. Also the fibonacci 0.50 retracement between $1,875 and $1,676 has been tested.

Gold is seen to be trading around $1,770 levels at this point in writing and might test $1,780 zone before reversing lower again. Immediate resistance is seen around $1,820 mark, while support is at $1,723 levels respectively. A break below $1,723 will confirm that a meaningful top is in place around $1,790 levels and bears are back in control.

On the flip side, it is also possible for Gold to rally towards $1,800 to test fibonacci 0.618 retracement before reversing lower again. Either way, prepare for a drop towards $1,650 and $1,550 levels, going further. Also note that resistance trend line which broke earlier is now providing the necessary angle for prices to print lower lows below $1,676.

Trading plan:

Remain short, stop @ 1,875, target @ 1,650 and 1,550.

Good luck!

The material has been provided by InstaForex Company –

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