Nov. 16 – Choppy Trading In Gold – A Quick Technical Review - Forex News by FX Leaders

Nov. 16 – Choppy Trading In Gold – A Quick Technical Review

Posted Thursday, November 16, 2017 by
Arslan Butt • 1 min read

What’s up fellas. A day before, Gold traded exactly in line with our forecast. The investors were advised to stay bullish above $1,277 with a target somewhere around $1,285. For now, the technical side is also lining up for a potential trade setup.

Gold // XAUUSD- Technical View

There are loads of technical indicators that are suggesting a blend of the bullish and bearish trend, certainly confusing the traders. No worries, we can still take advantage of thin trading volume in Gold. Let's take a look.

Gold - 4 Hour Chart - Trading RangesGold – 4 Hour Chart – Trading Ranges

– On the 4 Hour chart, we can see a huge bearish candle engulfing the previous bullish candle, demonstrating the selling sentiment of traders. But right after it, the Gold has formed a "Spinning Top" which is followed by a bearish engulfing candle. It means, the bearish trend of Gold is lacking momentum. No surprises, this happens when the market is lacking trend.

– Stochastic and RSI are coming out of the overbought zone. Which signifies that entering a sell position will give some profits today.

– Gold is facing an immediate support of $1,277 and $1,271. Whereas, the resistance prevails at $1,283 and $1,289.

Gold //XAUUSD – Trading Plan

Today $1,281 is a very crucial trading levels as below this, the Gold has higher odds to stay in sell with an initial target of $1,277 and $1,272.  Good luck and trade with care fellows!

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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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