Nov. 20 – Are You Up To Catch Retracement In Gold? - Forex News by FX Leaders

Nov. 20 – Are You Up To Catch Retracement In Gold?

Posted Monday, November 20, 2017 by
Arslan Butt • 1 min read

What’s up fellas. It is a normal Monday, and the market is expected to continue with thin volatility. Yet, the technical side of gold is signaling a fair opportunity for us. Let's check this out!

 

Gold // XAUUSD- Technical View

On the 4- hour chart, we can see a big bearish candle (bearish engulfing) which is engulfing the previous bullish candle (shooting star). The shooting star candlestick itself demonstrates the bearish reversal. That's one of the reason we can open a sell in Gold today.

 

Stochastic and RSI has entered the overbought zone. At the moment, it is holding at 86 & 89 respectively and signifying that entering a sell position may end up in profits today.

Gold - 4 - Hour Chart - Overbought Metal  Gold – 4 – Hour Chart – Overbought Metal  

Now let's have a look at the lagging indicator, the 50 periods EMA. It's holding at $1,281. Yup, it's quite far from the CMP (current market price) and supporting the selling sentiment.

 

Lastly, the Fibonacci levels are providing an immediate support 23.6% retracement level of $1,291 and 38.2% retracement level of $1,286. Whereas, the bearish trendline is extending a solid resistance at $1,295.

 

Gold // XAUUSD – Trading Plan

Based on the above analysis, we shared a forex trading signal to enter a sell position below $1,293 with a stop loss above $1,297 and take profit of $1,286 and $1,284. 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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