Gold futures technical analysis: Go bears with this 4-to-1 trade idea, at your own risk

In the ever-evolving world of gold trading, staying ahead with insightful technical analysis is crucial for those looking to capitalize on gold futures. Today, we’re diving deep with Itai Leitan at ForexLive.com, presenting a comprehensive gold futures technical analysis, coupled with a high-reward trade idea that beckons the astute trader. Here’s what you need to know:

Key Highlights:

• Trade gold at your own risk: Itai emphasizes the importance of personal responsibility in trading. Remember, every trade carries potential risks and rewards.
• Technical gold futures analysis insight: Itai shares his unique perspective on gold futures, guiding traders through the technical landscape.

Gold Price Forecast: A Closer Look

Itai provides an analytical deep dive into the current state of gold futures, highlighting a potential for correction despite gold’s status as a safe haven. This analysis is grounded in technical patterns and volume profile studies, offering a nuanced view for those interested in gold price forecasts.

Short Gold Idea: A 4:1 Reward vs. Risk Trade

1. Entry strategy: Itai points out a specific trading range, utilizing volume profiles to identify key areas of interest.
2. Stop loss: A carefully placed stop loss at 1.47% above the trendline to manage risk effectively.
3. Profit targets: Itai outlines a primary target at 1922.9, with partial profits planned at strategic levels down to 1997.7. SEE GOLD TECHNICAL ANALYSIS VIDEO ABOVE FOR DETAILS

Subtle Nuances for the Seasoned Trader:

• Volume Profile Analysis: Key insights into buyer and seller dynamics at different price levels.
• Risk Management: Itai discusses the significance of wider stops for swing trading and the concept of position sizing to mitigate risk.

Trading Wisdom:

• 📉 Understanding market dynamics: The technical analysis provided sheds light on the intricate dance between buyers and sellers in the gold market.
• 🛑 Risk consideration: Always prioritize risk management, adapting your strategy to the unique challenges of gold futures trading.

Conclusion:

This gold futures technical analysis on ForexLive.com offers a valuable perspective for traders looking to navigate the complexities of the gold market. With a focus on disciplined risk management and a strategic approach to entry and exit points, traders can engage with the market informed and prepared.

🔔 Stay updated: For more insights and analysis, remember to check back at ForexLive.com, where the trading community benefits from a wealth of knowledge and expertise.

Remember, the key to successful trading lies in informed decisions, a stop loss as a measured approach to risk. Good luck, traders!

This article was written by Itai Levitan at www.forexlive.com.

• Prior -50

The slump for UK retailers eased to the slowest in 10 months, so that is a bit of comfort at least. But the expectations reading is seen at -15, so retailers are anticipating a pick up in the decline in sales in March. Some good news for the BOE is that the quarterly data for selling price inflation was +54 and down sharply from +73 in November. That marks the weakest reading for said indicator since May 2021.

This article was written by Justin Low at www.forexlive.com.

S&P 500 futures are now flat while Nasdaq futures are marginally higher on the day. Equities enjoyed strong gains last week on the back of the Nvidia rush, and they are looking to carry on the momentum to this week. Month-end flows might factor into play though, so there’s still that to consider. US futures have been trending more sideways since Asia but have nudged a little higher in the past hour:

European stocks are more pensive though at the moment. Regional indices are down around 0.1% to 0.3% as the optimism seems more centered around tech shares once again today.

This article was written by Justin Low at www.forexlive.com.

Last
Friday, the Dow Jones pulled back a bit after reaching a new all-time high
following the Nvidia induced rally across different stock markets. On the
economic data side, we got another slate of strong data last Thursday with the US
Jobless Claims and US PMIs beating
expectations. The Fed members continue to repeat that they want to see a couple
more of inflation reports before deciding on rate cuts, but they keep on
reiterating that cuts are coming this year. Overall, the path of least
resistance remains to the upside.

Dow Jones Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Dow Jones
extended the rally into a new all-time high last week. We can also notice that
the price reacted to the top trendline of what
now looks like a rising wedge.
Moreover, the price continues to diverge with the
MACD which is
generally a sign of weakening momentum often followed by pullbacks or
reversals. In this case, it should be a signal for a pullback into the bottom
trendline where the buyers will have a better risk to reward setup.

Dow Jones Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see even
better the rising wedge formation and the divergence with the MACD. We can also
notice that we have the 50% Fibonacci
retracement level around the bottom trendline for
extra confluence.
That’s where we can expect the buyers to step in with a defined risk below the
trendline to position for a rally into another all-time high. The sellers, on
the other hand, will want to see the price breaking lower to invalidate the
bullish setup and position for a drop into the 38033 level first and upon a
further break lower, the 37128 level next.

Dow Jones Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that we have
another interesting support zone
around the 38900 level where we can find the confluence of the previous resistance now
turned support, the 38.2% Fibonacci retracement level
and the red 21 moving average. The buyers might want to split their orders as
the price could bounce either from the 38900 support or the bottom trendline.

Upcoming Events

This week we have some important economic data on the
agenda. We begin tomorrow with the release of the US Consumer Confidence
report. On Thursday, we will see the US PCE and the latest US Jobless Claims
figures. Finally, on Friday, we conclude the week with the US ISM Manufacturing
PMI.

This article was written by FL Contributors at www.forexlive.com.