Gold Drops Below $1,040
October 27th, 2009 Posted in Tech Analysis
Name: Anton Eljwizat
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Gold prices dropped below $1,040 per ounce on Tuesday, after falling the previous day by more than 1% on a jump in the dollar from a 14-month low versus the EUR. However, I will illustrate below that the gold may very well be heading for a reversal. Forex traders can take advantage of this imminent upward movement by entering long positions at an excellent entry price.
• The technical indicators that are used are the Relative Strength Index (RSI), Slow Stochastic and MACD.
• Point 1: There is a “doji” candlestick that has formed on the chart, indicating that a reversal should take place.
• Point 2: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the oversold territory, signaling upward pressure.
• Point 3: The Slow Stochastic indicates a bullish cross, signaling that the next move may be in an upward direction.
• Point 4: The MACD indicates an impending bullish cross, which may signal an upward movement is going to occur in the near future.
Gold 4-Hour Chart
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Tags: commodity prices, Forex, forex blog, Gold priecs, gold silver, gold today, gold usd, MACD, RSI, Slow Stochastic, Technical Analysis
