Trading gold to the downside, stochastics on XAU/USD overbought [Video]
|Yesterday we looked at gold from the fundamental standpoint and the market still sees downward pressure even though price has risen above $1800.
From the technical view, we see price at the upper trend line in this bearish run so we will wait for confirmation before going short.
For this, we can wait for a bounce or use another technical indicator like the Stochastic Oscillator which is now showing Overbought.
We can also add another like the Parabolic SAR and wait for a bearish signal.
If you want to know more about how to use these indicators, I’ve added a link at the end of this video.
Last week we looked at USDJPY on the daily chart and how price action broke the year-long downtrend.
On today’s 4 Hour chart, we see price just touching the lower trend line and the Stochastic Oscillator showing Oversold.
However, please watch the fundamentals on the USD as the US Congress should be voting on the next COVID stimulus package this week.
Last week as well we looked at the rise in Platinum and we see that price did, in fact, rise, but we are now seeing a consolidation pattern in this symmetrical pennant.
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