Sell Signal in Gold, Encashing the Doji Pattern
Arslan Butt • 1 min read
It’s been another quiet day as most of the financial markets still remain closed. However, forex brokers are operating and we may have a chance to get some quick trades. So here comes the first one:
The precious metal gold hit a 6-month high earlier today as worries over global growth and a partial government shutdown in the United States fired risk aversion, urging investors to seek refuge in the metal. This is why gold managed to place a high near $1,274.
Anyhow, the precious metal seems to be overbought now as the RSI and Stochastics are holding at 85. More importantly, gold has formed a doji pattern right below a resistance level of $1,274 which signifies indecision among investors.
So, we have opened a forex trading signal to open a sell position below $1,274 with a stop loss above $1,277 to target $1,270 today.
All the best!