Gold’s Bearish Trend Weakens – Can We Expect Bullish Reversal?
Arslan Butt • 1 min read
Over the fast few weeks, gold has suffered over easing trade war tensions. Unfortunately, our forex trading signal on gold hit the stop loss after floating in 40 pips profit throughout the day.
It’s because of the fact that the oversold gold is recovering from a more than five-week low. Most of the bullish trend is supported by a pause in global equities’ rally.
Technically speaking, the precious metal has formed a candlestick pattern hammer on the daily timeframe. Team FX Leaders was targeting $1,278-$1,276 as it’s one of the major support areas.
Back on January 7 & 21, gold bounced off this level to place a high near $1,350. The relative strength index (RSI) is in the oversold zone, indicating that the sellers are exhausted. The hammered pattern above $1,278 support zone is another bullish signal for gold.
On the technical front, gold can go for a correction up to $1,296. The focus also remains on the Advance NFP data which is due to be released during the US session.