3 Reason To Stay Bearish On Gold Today
Arslan Butt • 1 min read
We just cashed in profits on our forex trading signal on Gold. It’s been few days, we haven’t heard any controversial remarks neither from the United States nor from North Korea. Therefore, the precious metal is trading on the technical levels today.
Three Reasons to Stay Bearish On Gold
Looking at the 45 – Mins chart, we can see a solid bearish momentum. Gold consolidated in a narrow range of $1,314 – $1,322.
Gold – 45 Mins Chart
1 – Gold managed to drop below the earlier support level of $1,314. Well, in order to be more sure about the bearish breakout, you should wait a bit for a couple of candles to close below the support level.
2 – You can see a bearish crossover on the 50- periods EMA at $1,317. The crossover resulted in a bearish engulfing candle, which also supports the bearish sentiment of investors.
3 – Thirdly, the bullion has broken below the symmetric triangle pattern at $1,316. Typically, on the breakout of the symmetric triangle, instruments continues trading towards breakout side. The same, we can expect from Gold today.
Gold // XAUUSD – Trading Plan
I’m going to wait for a bit retracement in Gold until $1,316 before taking another sell position with a stop above $1,319 and take profit at $1,311. Good luck.