What’s up, traders.

Recalling our precious update on gold, Risk-off sentiment drives bulls in Gold – Is it going after $1,232? the precious metal traded in line with our forecast and our forex trading signal managed to secure 110 green pips, thanks to the weaker dollar sentiment.

Who’s up for the next trade?

On the hourly chart, the precious metal gold has entered the overbought zone and the bulls may start taking profit near $1,233, just like we did. If that’s the case, we may see a correction in gold prices until $1,227 and $1,224.

The recent candle on the hourly chart is half bullish and half bearish. It’s demonstrating that the bulls are exhausted and the sellers are looming around the corner. Gold is likely to face an immediate resistance near $1,234 while support prevails at $1,227.

Gold – Trade Plan

In order to catch a quick retracement, we have opened a sell position in gold below $1,232 with a stop above $1,236 and take profit near $1,227. Good luck!