Bearish Breakout In Gold- A Potential Buying Entry!
Arslan Butt • 2 min read
Good morning forex friends! Our forex trading signals pocketed another +100 pips in the Gold and GBPJPY. Today, the economic calendar is full of top tier fundamentals from CHF, GBP and USD. Take a look at another trade setup in Gold.
Key Technical Drivers
Yesterday, we closed our forex trading signal at $1,332 securing 70 green pips. Thankfully, it proved to be a good decision. The market reversed all its gains, and Gold is now trading at $1,321.
Remember when we discussed the Gartley pattern? The market has violated the setup, and it's not there anymore. On the 2-hour chart, we can see that Gold has formed a bearish engulfing candlestick pattern which signaled investors to begin selling. In response, we closed our signal. Read more about FX Leaders Candlesticks Trading Strategy.
Gold – 2 Hour Chart – Bullish Channel Breakout
For now, Gold has broken below the well maintained bullish channel at $1,323 emphasizing the strong bearish sentiment of investors. In addition, I was observing a 50 – periods EMA crossover in the same 2-hour chart. Unfortunately, we missed a good chance to capture another 50 pips trade here. No worries, there is always something in the market, we just have to spot it.
The Stochastic and RSI has gone deeper in the oversold region now holding at 10. It's a definite signal of not entering a sell position but rather looking for a buying entity.
Gold – Trading Idea
At the moment, $1,317 seems to be a nice level to take a buying entry with a stop at $1,314 and take profit at $1,330. Below $1,332/34, the market can show reversals and a bearish trade opportunity. Keep following for more updates, trade ideas and forex trading signals. As always, follow the FX Leaders Risk Management Strategies to limit our risk and maximize the profitability. Good luck.