Bearish engulfing in Gold – Is it going after $1213 today?

What’s up, fellas.
GOLD trades slightly bearish after placing a high of $1,225 on Friday. Buyers entered the market after the comments from US Federal Reserve officials that were cautious about global economic growth. During the Asian session, team FX Leaders opened a gold signal to sell below $1,220 to target $1,217. The market played in our favor but missed take profit by 5 pips. Here’s how we are looking to deal with this trade…

As we can see on the chart below, gold is facing a significant resistance at $1,223. The precious metal has closed a bearish engulfing pattern right below $1,223 which signifies a bearish bias of traders.

The RSI is holding in the overbought zone, suggesting that the bulls are exhausted and we may see sellers entering the market.

Support Resistance
1215.29 1226.49
1209.14 1231.54
1197.94 1242.74
Key Trading Level: 1220.34

The bullish breakout of $1,223 can lead gold prices towards $1,236. While gold can stay bearish below $1,223 to target $1217 (23.6% Fibonacci retracement) and $1,213 (38.2% retracement).

Good luck!

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Related Articles

Forex Signals Brief April 9: Can S&P 500 Make the Break Today and Close A great Week?

1 hour ago

Save

Silver Eyes $33.24 Breakout as U.S.-China Trade Talks Heat Up

3 hours ago

Save

Oil Prices Eye $62 as U.S.-China Tariff Talks Boost Sentiment

3 hours ago

Save

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments