FxWirePro: Gold price goes sideways after shooting star, intermediate trend edgy after railroad pattern – Boundary binaries to speculate

Chart and candlestick patterns formed- Resembling whipsaws pattern, shooting star at 1277.71 levels (on daily plotting) and 3-black crows and railroad patterns have occurred at 1279.72 and 1280.04 levels respectively (on monthly plotting).

Contemplating and synthesizing these chart patterns, coupled with the fact that the major trend has been in the downtrend that has now gone into the consolidation phase, we foresee less likely to spike any further. Instead, more downside potential is foreseen.

Please be noted that the trend has been drifting into sideways after yesterday’s shooting star pattern and it has shown its bearish effects.

Well, for now, the supports in intermediate trend are observed at 1260-1264 levels, and any break below these levels would likely to evidence the trend reversal which seems unlikely.

On the flip side, the stiff resistance is at 1288 and 1291 levels.

On a broader perspective, the prices are now attempting slide below 21EMA levels (refer monthly chart).

The sustenance below 21EMA levels is crucial and closely watched, as the pair has previously shown a fake jump sensing supports at this juncture and once again declined sharply in this month.

Trade tips:

Contemplating above technical rationale, on trading perspective, it is advisable to buy boundary binaries using upper strikes at 1283 and lower strikes at 1270 levels, the strategy is likely to fetch leveraged yields as long as underlying spot remains within these strikes on or before the binary expiry duration.

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