Triple Top XAUUSD (Gold) - Bearish Trade Idea
Key Takeaways
- Gold made a triple attempt to break the $2000 barrier but was quickly rejected as it made fresh highs just above $1980
- Johnson & Johnson, showed positive results for a vaccine.
- Goldman Sachs put out a $2300 forecast for the precious metal.
Technical Analysis
Time of writing this report is 3:45am EST. Current price-action behavior is signalling that Gold's bullish momentum is started to get exhausted as this precious metal appears to forming a triple top. If this is not developing into a triple top, at least the market is unsure about the further direction with this current large developing doji.
RSI is starting to drop back below 70 confirming lack of bullish momentum. A break above the current candle's high around $1981 could provide room for further upside, discrediting a triple top and push towards $2000. If however we're unable to break any further at least in the interim, we should expect some correction towards the downside.
Trade Idea
Bearish: Initiate shorts around the current price point but leave room for the possibility of adding additional shorts if we break higher around $1990 - $2000.
Regards,
Michael Harding
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Information and opinions contained with this video are for educational purposes only and do not constitute trading recommendations. Trading Forex on margin carries a high level of risk and may not be suitable for all investors.
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