⚡Crypto Alert : Start Trading Cryptos with 0 Fees - Click Here

Choppy Session In The Gold – Is it a good time to short?

It’s been two days now, the Gold is stuck near the multi-months high after the dollar slipped against a basket of currencies. The bullion market wasn’t that active due to US bank holiday but the investors are back today. However, we already closed a trading signal on DAX, pocketing nice profits. Check our another trade on Gold…

GOLD / XAUUSD – Technical View

The technical side of the Gold hasn’t changed much. A couple of days ago, Gold broke out of the ascending triangle pattern at $1,326 and lead the metal to a multi-month high of $1,344. While this movement, the precious metal entered the overbought zone.

Gold - 240 - Min Chart

Gold – 240 – Min Chart

The Gold has formed a candlesticks pattern called “hanging man” followed by the strong bullish candles.  It signifies a potential of a bearish reversal. The lagging indicator, 50- periods EMA is also supporting the bearish bias.

You can see on the 4- hour chart below, the 50- EMA, which is used to forecast the future behavior of prices in the time series analysis, is holding at $1,322. So, technically the Gold prices should be around $1,322. But wait, having divergence between lagging indicators and CMP isn’t something surprising. So, we should aim for $1,335 and $1,331 today.

Gold // XAUUSD – Trading Plan

The idea is to stay bearish below $1,340 with a stop above $1,344 and take profit at $1,335 and $1,331. Good luck.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Avatar
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
Related Articles
🔒 OPEN A TRADING ACCOUNT