Gold – Bearish Pattern Appears – Time for Cut & Reverse Strategy!
Arslan Butt • 1 min read
Earlier this morning, we opened a buying position in gold at $1,225 to target $1,228. I must say, the market moved exactly as we expected but unfortunately, gold missed our take profit just by inches.
GOLD reversed after placing a high of $1,227.37 while our take profit was $1,228. For the moment, gold has formed a bearish pattern and it’s time to apply cut & reverse strategy…
- On the 3-hour chart below, GOLD made an impressive bullish move, but it has entered the overbought zone.
- The double top resistance is forcing gold to stay below $1,227.
- The 4-hour chart is showing a doji, which is signaling a nice chance of a bearish reversal. Even if it’s not a reversal, we may have an opportunity to capture quick 30/40 pips in the wake of correction.
So, here’s what I’m going to do.
I’m going to close my buying position manually at $1,225.90 in profit to open a sell poisiton below $1,227 to target 1,222. Let’s see how the market plays us.