Gold - Bearish Pattern Appears - Time for Cut & Reverse Strategy! - FX Leaders News

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

Posted Thursday, November 29, 2018 by
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.

Good luck!

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About the author

Arslan Butt is our 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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