Gold takes a bearish punch on chin – An update on Trading Signal! - Forex News by FX Leaders

Gold takes a bearish punch on chin – An update on Trading Signal!

Posted Tuesday, August 14, 2018 by
Arslan Butt • 1 min read

Our earlier forecast on gold ‘Gold violates descending triangle pattern‘ did pretty well as the market gold prices plunged dramatically to hit our suggested level of $1,197. What’s next?

On Monday, gold prices fell below $1,200 to their lowest since late January 2017. Most of the selling trend was initiated on a strong dollar as investors tried to shelter from a financial market rout triggered by a crashing Turkish lira.

Earlier today, we shared a forex trading signal to open a buying position above $1,196 to target $1,199. The logic behind this trade is pretty simple. If you take a look on the 4-hour chart, gold has gone massively oversold after yesterday’s sell-off.

Gold - 4 Hour Chart

Gold – 4 Hour Chart

It has recently formed a Doji candle, which is representing a tug of war between bears and bulls. It means the bulls are likely to take over from here. Gold can go for retracement until $1,197 (23.6% Fibo level) and $1,200 (38.2%) level before taking another dip.

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

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.
Related Articles

Leave a Reply

Notify of