Gold made a huge bullish move on the weekly and monthly chart. The price has been on consolidation on the daily chart. The H4 chart suggests that the price may make a bearish move. Yesterday’s daily candle closed within the day before yesterday’s candle. Thus, there is a possibility that the price may head towards the South and offer a short entry to the sellers. Let us have a look at the H4 Gold chart. This trade idea was generate by our powerful Elite Swing Trader System.

The price had a bounce at the level of 1491.35. On the contrary, the level of 1507.90 is working as the level of resistance. The resistance level has already produced a bearish engulfing candle. If the price keeps coming down and makes a breakout at the support level, then the sellers shall wait for an upside pullback followed by an H1 bearish engulfing candle right at the breakout level to go short on Gold. Let us have a look at the summary of the trade...

• Sell Stop Order: 1492.84
• Stop Loss: 1508.80
• Take Profit:  1475.07

In any financial market, support, resistance, and breakout are the three most important aspects that traders must count. Almost all the strategies and indicators are made of these three aspects as well. To do well in trading, a trader must learn the art of drawing support/resistance level. It might seem very easy at first sight, but it does need some efforts to be given by the traders to get well acquainted with it. For more trade ideas, join the Price Action Society... If you like our analysis and would like to receive 3 to 7 trade ideas per day, then click here to learn more about Price Action Society.