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FX.co ★ Trading plan for Gold for February 15, 2022

Trading plan for Gold for February 15, 2022

Trading plan for Gold for February 15, 2022

Technical outlook:

Gold prices are trading at a 12-week high around $1,880 on Tuesday at the time of writing. The yellow metal has taken out resistance at $1,877 with ease but the RSI on hourly chart (not shown here) is indicating a strong bearish divergence. High probability remains for a turn lower toward $1,840 and $1,820 levels in the near term.

Gold wave structure has changed as bulls have taken out $1,877 interim resistance. The primary boundary is now between $1,753 and $1,853, which was retraced to $1,780 on January 28, 2022. The Fibonacci extensions for the above upswing are pointing towards $1,890 and $1,914 levels respectively (not seen on the 4H chart presented here).

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It remains to be seen if Gold prices continue to rally from here to the above targets or after producing a pullback. Intraday and short term fibonacci support levels are seen around $1,740 and $1,720, which are the 0.382 and 0.618 retrwcements. Aggressive traders might be preparing to initiate fresh short positions around current levels.

Trading plan:

Aggressive: Potential drop to $1,840-20 against $1,916

Conservative: Remain flat and allow the correction to complete.

Good luck!

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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