We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Oil - US Crude
Bullish
Bitcoin
Bearish
More View more
Real Time News
  • RT @Tony_Nyman: MS #FX Trades of the week - Sell $USD/NOK at market for 8.74. Stop 9.20 - Sell $USD/CNH at market for 6.95. Stop 7.21 #Lowe…
  • German Economy Ministry - German economy remains in weak phase - Economic indicators have not yet pointed to a trend reversal - Pronounced recession is not expected $EUR
  • Greed has proven to be a hindrance more than assistance for traders. How does greed lead to #FOMOintrading? Find out from @RichardSnowFX here: https://t.co/aT8TZjlFqP https://t.co/XtDrpjR4yT
  • Crude Oil Prices May Give Back Gains as Brexit Optimism Wanes - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2019/10/14/Crude-Oil-Prices-May-Give-Back-Gaons-as-Brexit-Optimism-Wanes.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #OOTT #crudeoil #Brexit
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/RlubZzBmyN
  • Why trade with Bollinger Bands®? Find out as a day trader, how you can use it to your advantage:https://t.co/dwODDDSsFi @WVenketas https://t.co/lzHvMaeOxU
  • (#ASEAN Fundamental Forecast) US Dollar Outlook on SGD, INR and IDR Amid Trade Talks, China GDP #USD $USDSGD $USDINR - https://www.dailyfx.com/forex/fundamental/article/special_report/2019/10/14/US-Dollar-Outlook-on-SGD-INR-and-IDR-Amid-Trade-Talks-China-GDP.html?CHID=9&QPID=917702 https://t.co/EKyMMEJa00
  • LIVE NOW: Join Currency Analyst @ZabelinDimitri as he previews the upcoming week’s main political themes and discusses their impact on the financial markets. Register here: https://www.dailyfx.com/webinars/146770987?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • China’s CNY Trade Balance (SEP) Actual: $39.65b Est: $34.75b Previous: $34.83b And China’s CNY Trade Balance CNY (SEP) Actual: 275.15b Est: 253.80b Previous: 239.60b
  • LIVE IN 30 MIN: Join Currency Analyst @ZabelinDimitri as he previews the upcoming week’s main political themes and discusses their impact on the financial markets. Register here: https://www.dailyfx.com/webinars/146770987?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
Gold Price Chart Patterns Set It Up for Selling This Week

Gold Price Chart Patterns Set It Up for Selling This Week

2019-06-18 08:10:00
Paul Robinson, Currency Strategist
Share:

Gold Price Technical Outlook:

  • Gold price reversal candle at big resistance suggests lower prices
  • Will take a lot of buying to get gold into the clear on the upside

For forecasts, educational content, and more, check out the DailyFX Trading Guides page.

Gold price reversal candle at big resistance suggests lower prices

On Friday, gold was pushing strongly into a thicket of long-term resistance from around the mid-1340s up to 1375 before sellers pushed it back down, carving out a closing reversal candlestick (i.e. ‘shooting star’, ‘pin bar’, etc.) that warns of weakness thereafter. The combination of resistance and reaction makes a solid case for sellers.

On the weekly time-frame, last week’s volatile week of price action created a long-legged Doji, a candlestick that demonstrates a power struggle between buyers and sellers. Given where it developed on the chart its significance is elevated.

Today’s small push higher may only turn out to be a minor retest of last week’s reversal event. A break below yesterday’s low at 1333 could have selling interest increase as momentum to the downside picks up. Support comes in at last week’s low, but if the Doji is to hold its power then the 1320 level may quickly break and have attention turned towards the August trend-line near 1300.

To negate Friday’s reversal, we will need to see a close above 1358, but even then gold will still be trading in the long-term zone of resistance. A weekly close above the aforementioned high will be needed to negate the Doji, but unless a close can development on a weekly basis above the July 2016 high of 1375, risk for yet another strong turn lower will remain elevated.

The bottom line is, risk of lower prices is quite elevated from here given both price levels and price action, and even if a bit more strength is to develop, until gold clears itself of all major long-term hurdles and breaks the multi-year wedge with conviction, risk/reward from where I sit isn’t favorable for fresh longs. Would-be shorts may want to lean on resistance up to 1375 as a backstop for bearish bets.

Check out the IG Client Sentiment page to see how changes in trader positioning can help signal the next price move in gold and other major markets and currencies.

Gold Price Weekly Chart (Doji at major resistance)

Gold Price Chart Patterns Set It Up for Selling This Week

Gold Price Daily Chart (reversal candlestick)

Gold Price Chart Patterns Set It Up for Selling This Week

Resources for Forex & CFD Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.