Gold Trades In Bearish Channel – An Update on Sell Signal
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.
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!