Gold Currently Overvalued
October 13th, 2009 Posted in Daily Forex Overview, Gold
Name: Anton Eljwizat
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Gold climbed to a record high at $1,063 on Tuesday as a weakening dollar boosted demand for the commodity as an alternative investment. Investors have become cautious about pushing prices above a key resistance level that has held for most of 2009. As I will demonstrate below, the price of gold may very well be heading for a reversal. Forex traders can take advantage of this impending movement by having their Entry Orders in place to capture this reversal. Don’t forget your Stops and Limits!
• The technical indicators used are the Slow Stochastic, Relative Strength Index (RSI) and William Percents Range.
• Point 1: The RSI signals that the price of this pair currently floats in the over-bought territory, indicating downward pressure.
• Point 2: The MACD indicates an impending bullish cross, which may signal a downward movement is going to occur in the near future.
• Point 3: The William’s Percent Range also supports the downward direction.
Gold Daily Chart
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Tags: gold prices, gold silver, gold today, gold usd, market price gold, price of gold, world gold prices
