Gold Triangle – Sellers Dominate! - Forex News by FX Leaders

Gold Triangle – Sellers Dominate!

Posted Friday, August 18, 2017 by
Arslan Butt • 1 min read

Earlier, I shared a forex trading signal to staying in sell below $1290. We lucked out and managed to close our trade in profit. Later, the market reversed to our entry price. Now, I'm looking at another hot trade setup in gold.

Gold - 4 Hour Chart - Double Top Gold – 4-Hour Chart – Double Top

The ABCD pattern we discussed in our earlier updates is still in action. Today though, gold is offering something new the double top at $1290.

On the 4-hour timeframe, the yellow metal is consolidating below $1290 along with the Stochastic RSI at 85, the overbought region. This signifies the bulls will think twice before buying the overbought commodity.

Gold – XAU/USD – Trading Levels

Support            Resistance

S1: 1282            R1: 1287

S2: 1277           R2: 1290

S3: 1274           R3: 1295

Gold Trading Plan

I'm looking to stay in sell only below $1290 with a stop loss above $1294 to target the $1284. In case the market breaks above $1290 and reaches $1299, that will be my second entry for taking a sell position. Good luck traders and have an awesome weekend!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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