Sell Signal in Gold, Encashing the Doji Pattern - Forex News by FX Leaders

Sell Signal in Gold, Encashing the Doji Pattern

Posted Wednesday, December 26, 2018 by
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!

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About the author

Arslan Butt // 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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