GOLD: Possible new short after lower highs

11.08.2016 / 10:34

Rating:

GOLD:

Date: August 11, 2016

H4 Graph: Choppy, sideway market

After the price went up to $1366, it was not able to reach the last high at$1375. The price instead made 3rd lower High, now reached for horizontal resistance, right at the level of break $1354,70, but it did not break up again and price hold lower level. We might see impulse lower as the price holds and remain under the bigger diagonal resistance. Also the price hold above the Fib 61.8%.

Price Action - Pin Bar and Engulfing bar at level of resistance - signal for possible short signal

The combination of the two indicators CCI and RSI additionally gives signal for short

Alternative scenario: If the price moves up above the previous high above the Pin bar and above the diagonal resistance line will cancel the bearish view.

Technical Indicator:

CCI (14) - below 0 signal for short

RSI (14) - below 50 negative signal

Price for Entry short around: $1344

SL: $1356

Jr. Trader - S. Fuchedzhiev

Varchev Traders

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GOLD: Possible new short after lower highs

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