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