Gold Trades Beneath Resistance – a Quick Technical Outlook
Arslan Butt • 1 min read
Earlier today, the yellow metal gold was trading close to a more than one-week low on a stronger dollar. The uncertainties around the Sino-US trade dispute and worries over slowing global economic growth have supported gold above the psychological trading level of $1,300 level.
GOLD – Quick Technical Outlook
- As you see in the chart, gold came out of a sideways range of $1,317 – $1,310 to place low around $1,300.
- The RSI and Stochastics are stuck in the oversold zone, below 20, which is a clear signal that metal is oversold.
- We have a Doji pattern on the 4-hour chart, which is very likely to trigger bullish retracement.
- Gold has immediate resistance at $1,310 while support remains the same at $1,300.
- Although the short term projection is bullish, the long term projection is bearish for gold. The 20 periods EMA is also confirming the bearish bias of the market.
Gold – XAU/USD – Trade Plan
Consider staying bearish below $1,310 with a stop loss above $1,314 and take profit around $1,300.