Sell Signal in Gold, Encashing the Doji Pattern

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!