Diminishing Risk Aversion Keeping Gold In a Bearish Mode
Arslan Butt • 1 min read
So far, the team FX Leaders has shared remarkable forex trading signal. Earlier today, we opened a trading signal to buy Gold in order to target $1,315 but due to change in technical outlook, we decided to close it manually taking merely 10 green pips. As I always say, it’s better to be safe than sorry. So, are we looking to sell now? Check out the below idea.
Gold/ XAUUSD – Technical View
On the daily chart, the Gold has reached a very crucial level of $1,310. There’s a total mixture of technicals, and long-term entry can’t be ensured until the technical give an appropriate signal.
Breaking down the technicals, the market has formed “Three black crows” signaling the bearish sentiment of investors. Actually, the today’s close will confirm it’s a three black crow pattern or something else.
Gold – Daily Timeframe
The 50-EMA is supporting the Gold at $1,311. We may see a bullish trend if Gold manages to close above the moving average.
The RSI and Stochastics are massively oversold, but it’s not a sure shot measure of a bullish reversal. Yet, sellers will feel hesitant to enter the market now.
Gold / XAUUSD – Trade Idea
Technically, the break below $1,310 can extend the bearish trend until $1,304 and the psychological level of $1,300. On the flip side, it will be a good idea to capture a bounce back about $1,300.