Bearish engulfing in Gold – Is it going after $1213 today? - Forex News by FX Leaders

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

Posted Monday, November 19, 2018 by
Arslan Butt • 1 min read

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!

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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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