FX.co ★ Trading plan for Gold for December 19, 2019

Technical outlook:

Gold prices remain virtually unchanged from yesterday. Gold is trading sideways but the potential remains for a bounce through $1491 level before turning lower again. Please note that Fibonacci 0.618 resistance of a recent drop between $1520 and $1445 is also seen through $1491. It will converge alongside trend line resistance as well. We can expect a bearish bounce there and the yellow metal could turn towards $1415 level before finding support. The overall structure remains bullish with the current phase termed as corrective at the level of $1557. Once bottom is formed around $1400/15 levels, a bullish turn is expected to reach upto $1580/90 levels. On the flip side, if prices are able to break above $1520 levels from here, it will confirm that a meaningful bottom is already in place at $1445 and bulls are poised to continue the upper trend. Trading point of view, an aggressive strategy could be to go short from $1491 levels targeting $1415, while a more conservative strategy is to remain flat.

Trading plan:

Aggressive traders look to sell around $1491, top at $1520, target $1415

Conservative traders remain flat for now.

Good luck!