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!
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