Gold is bouncing off the strong support zone
The gold daily chart is revealing a hard test of the strong upside support zone 1280-1290Â zone. This zone is a stronghold for the upside extension. Only a daily close below the 1280 level would invalidate the upside scenario.
On an H8 chart, we can see a bounce off the strong support zone which is giving us a perfect long-trade entry opportunity. Going long here has a perfect risk to reward, by placing a stop loss below the 1285 level and targeting 1320 level higher at least. In the case of a daily close above this level, you can release the trade by moving the stop loss to breakeven entry.
We have used the combination of the top-down trading analysis to get these key levels explained on the charts.
Happy trading! (click on the chart to enlarge it)
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