Gold prices consolidate in apex formation pending big movement

Gold prices has been consolidating in an apex formation since a month ago. Usually, an apex is formed prior to a big movement. It could be a back up action from the structure formed during Feb-Apr 2020. So a bullish continuation for Gold is likely once it breaks out from the apex formation.

On the short timeframe in H1, Gold has tested the supply line of the apex and I am looking for a weak rally up to test the supply zone as annotated in the chart. A rejection from the supply zone could represent a short entry for a quick swing trade to the downside.

Below are the key parameters for Gold potential long setup for trading session on 11 May 2020, with a potential reward to risk ratio of 3.6.

• Entry: short limit order at 1712
  
• Stop loss: 1718
  
• Take profit: 1690