I’m expecting a heavy volatile trading week with 2 major economic news that traders keep an eye this coming Thursday; Federal Funds Rate and FOMC Statement.

Let’s have a look the Gold high timeframe candlesticks patterns:

Weekly Candle (Previous Close): Red Spinning Top

Daily Candle (Previous Close): Red Doji With Small Body

Both the yearly and monthly Gold candlesticks are forming Red Spinning Top. The 2023 candle closed in green while the last 3 month candles are also closed in green.

Price right now is actually consolidating after a major uptrend move has occured which continues to manifest on both the current yearly and monthly candlesticks. If the existing support levels hold, there’s more probability that the uptrend will resume seeking new all-time Gold high prices!

In summary, neutral price actions during the previous weekly and daily candles. At least support levels were held somehow.

With 2 big news coming up this week, Gold price might have 3 scenarios:

1. Fall hard if there’s an increase in Fed interest rates.

3. Continued sideways if rates remained unchanged.

My bias is there will be a cut in interest rates so my intraday trade plan is a 2.60 risk:reward long.

The entry point is a swing high break-out based on last Friday’s bearish engulfed 4H candles. I have to wait to clear the resistance on this area first. If the break-out is successful, the take profix exit is towards the 2 valid 4H FVG targets territory. See details on the chart above.

In case selling volatility strikes, will set the stop loss below Friday’s swing lows.

Gold Intraday Analysis and Trading Plan For January 29, 2024

Jan 29 2024

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