Gold Trades In Bearish Channel – An Update on Sell Signal - Forex News by FX Leaders
Gold - Three Inside Down

Gold Trades In Bearish Channel – An Update on Sell Signal

Posted Tuesday, May 22, 2018 by
Arslan Butt • 1 min read

The demand for safe-haven asset dampened after an ease in trade war fears between the U.S. and China. During the Asian session, gold prices remain steady, after posting a fresh yearly low in the previous session. Looks like the market is taking a breather from its recent rally in absence of market-moving economic events.

Gold – XAU/USD – Three Inside Down

Technically speaking, gold is still on a strong bearish trend. Zooming out the 4-hour chart, gold is trading below 50-periods EMA which is likely to become a hurdle somewhere around $1,297.

The RSI above 80 is signaling the overbought scenario and we can see a ”three inside down” candlestick pattern which is supporting the bearish bias of investors.

Crude Oil - 4 Hour Chart

At the moment, gold is testing a solid support level of $1,288 on the 2-hour chart and the violation of this can bring more sellers in the bullion market. Gold can gain support above $1,284 along with a resistance at $1,294. We may see a tug of war between bulls and bears in this range.

Gold – XAU/USD – Trading Idea

We just shared a forex trading signal to short gold below $1,290 with a stop above $1,292 and a take profit of $1,285. Good luck!

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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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