Gold Forms a Bullish Reversing Pattern on the Daily Chart, as Sentiment Sours Again - Forex News by FX Leaders
The bullish reversing setup is working

Gold Forms a Bullish Reversing Pattern on the Daily Chart, as Sentiment Sours Again

Posted Thursday, November 14, 2019 by
Skerdian Meta • 1 min read

GOLD was extremely bullish during summer, as the sentiment turned negative in financial markets due to a deteriorating global economy and an escalating trade war. But, the sentiment improved in September and Gold lost some appeal, retracing lower. In October, the price action was mostly sideways, with Gold trading in a range.

This month though, the bearish momentum resumed again for Gold and we saw a decent decline last week and on Monday morning. Gold broke the 200 SMA which was acting as support on the H4 chart and fell to $1,445, which is a long term support and resistance zone.

But, the decline stopped at that level and on Tuesday afternoon we saw Gold reverse higher, as the sentiment turned negative, following Donald Trump’s speech on trade. He didn’t sound too upbeat about it, which hurt the sentiment and geopolitical tensions in the Far East added further fuel to that. So, Gold formed a doji candlestick that day, which is a bullish reversing signal after the decline.

Yesterday’s candlestick closed pretty bullish as well and the stochastic indicator became oversold and is turning up now. So, a bullish reversing chart setup has formed in Gold. Now let’s see if buyers will push to the 100 SMA (green) on the daily chart. If they do, we will consider going short from there, in case a bearish reversing chart setup forms as well.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of