Gold – Bearish Pattern Appears – Time for Cut & Reverse Strategy!

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.

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.

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