Gold Consolidates in Range – Let’s Take a Quick Trade

Gold prices gain in Asian session today on the Risk-off sentiment. The investors are highly uncertain after a massive sell-off in the equity sector. Moreover, the Chinese New year next week is keeping the Gold Gold supported over sentiments. However, we just took a trade in Gold, check out below…

Gold/ XAUUSD – Trade the Doji

• On the 4- hour chart, the Gold is stuck in a very narrow trading range of $1,319 – 1,325.
• The RSI and Stochastics have entered the overbought zone above 80.

Gold – 240 – Min Chart ​

• The most recent close is Doji near $1,324, which is followed by a very powerful bullish momentum. So it’s very likely to give us at least 20-30 pips reversal, if not more.   
• Overall, the Gold is still trading below 50-EMA which signifies the selling trend of Gold.

Gold / XAUUSD – Trade Idea

Considering the above technicals, we have shared a forex trading signal to open a sell below $1,324 with a stop above $1,327 and a take profit at $1,320. Later, I will be looking for a buy entry somewhere around $1,316. Good luck!