Gold looks like it wants to drop out of this resistance zone. In addition to the bearish price action and failure to break recent highs, we can see a bearish divergence on RSI (with bullish exhaustion), and the stochastic is about to cross over in the overbought region.
On the 4hr chart, we can see the bearish engulfing and inside bar candles. In addition, there are bearish divergences on RSI and MACD. RSI also showing bullish exhaustion and RSI is just about to break below the 50 line. MACD has already bearishly crossed over too.
On the 1hr chart, price action is forming what appears to be a descending triangle. We can use that local trend line to enter shorts.
Once price closes below $1,656, it should freefall towards the first support at $1,640 and if that breaks then to $1,600.
Please give this idea a like if you find it useful! Thank you!
On the 4hr chart, we can see the bearish engulfing and inside bar candles. In addition, there are bearish divergences on RSI and MACD. RSI also showing bullish exhaustion and RSI is just about to break below the 50 line. MACD has already bearishly crossed over too.
On the 1hr chart, price action is forming what appears to be a descending triangle. We can use that local trend line to enter shorts.
Once price closes below $1,656, it should freefall towards the first support at $1,640 and if that breaks then to $1,600.
Please give this idea a like if you find it useful! Thank you!
Comment:
First target at $1,640 has been reached
Trade closed: target reached:
Both targets hit! Great trade overall
Comment:
Gold is now down over $100. If you stayed in this trade, you made some nice money in a just a few days