Bearish Engulfing in Gold - Is It Good Time to Sell?
|On Tuesday, gold is easing off a two-week peak, as the greenback trades around a one-month peak. The market risk-tone is still mildly positive despite the tension between Libya and Iraq. The reason could be the impacts of Friday's upbeat US data as well as the International Monetary Fund's (IMF) projections.
In China, due to a virus, four people have already died, and there were also reports about an Australian man who has also been recently tested for the human transmitted disease. This resulted in the creation of the Wuhan Pneumonia control center to stop further spread of the disease. Meanwhile, Wuhan has also ordered for active supervision of markets and public transportation stations to halt further spread of this virus.
There were also reports about the three rockets which arrived near the US military bases in Iraq, but no losses were reported. At the Sino-US front, finally, the US-China phase-two deal talks are expected to happen a bit later. This news came in after China's Global Times reported that China needs time to think about the impact of the trade deal.
Whereas, the market's risk-tone remains mostly directionless due to lack of headlines. On the other hand, the traders from America will come back in the market to take their positions after the long weekend and will observe the US President Donald Trump's impeachment trial on Tuesday.
|
Support |
Pivot Point |
Resistance |
|
1555.07 |
1556.52 |
1558.18 |
|
1553.41 |
1559.63 |
|
|
1551.95 |
1561.29 |
Gold has formed a strong bearish candle below 1,559 resistance, and now it's looking to cross below 50 EMA. The RSI and Stochastics are suggesting bearish bias, and gold prices can drop until 1,549.
Gold - XAU/USD - Trade Setup
Gold Sell Below 1,554
Take Profit 1,550
Stop Loss 1,557
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.