Gold Retesting Bearish Trendline - Trade The Breakout! - Forex News by FX Leaders

Gold Retesting Bearish Trendline – Trade The Breakout!

Posted Monday, November 27, 2017 by
Arslan Butt • 1 min read

Howdy traders. Our forex signal on Gold was doing really awesome as it was making more than 40 pips on Friday. Unfortunately, it missed closing at our target level of $1,286 despite the fact that it placed a low of $1,285.55. Are you still ready to trade? That's what I'm looking to do with Gold today!

 

Gold // XAUUSD – Technical View

On the 4-hour chart, a long-term trendline connecting with the high of Sep. 20 and Nov. 17 is proving a solid turning point to Gold at $1,294. Gold has formed a candlestick pattern "Doji" and "shooting star" which is signaling a potential bullish reversal. The oversold Gold is now coming out of the oversold zone. Stochastically is at 52 and RSI at 27.

Gold - 4 - Hour Chart - Trendline Resistance Gold – 4 – Hour Chart – Trendline Resistance 

We also had a bullish crossover on the 50 periods EMA. Now the market is holding above it and the only hope is the resistance level of $1,294. The break above this will help Gold enter the $1,300 zone.   

 

Gold // XAUUSD – Trading Plan

Since we are already in the Sell below $1,292 with a stop above $1,294, I'm going to stick with it. Buying entry seems good only above $1,295 whereas, sell is safer below $1,294. Good luck and keep following for more updates.

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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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