Gold Prices Stabilize Near $1,130
November 17th, 2009 Posted in Tech Analysis
Name: Anton Eljwizat
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Gold touched a fresh high above $1,140 an ounce in Europe on Monday momentum from recent gains and a slide in the dollar index sparked fund buying of the precious metal. However, as I will demonstrate below, Gold may very well be heading for a reversal later this week. 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 Williams Percent Range.
• There is a “doji” candlestick that has formed on the chart, indicating that a reversal should take place.
• The Stochastic Slow signals further bearishness, which in turn indicates further downward pressure to occur anytime soon.
• The RSI signals that the price of this pair currently floats in the over-bought territory, indicating downward pressure.
• Williams Percent Range also supports the downward direction.
Gold 4-Hour Chart
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Tags: commodity, Forex, forex blog, gold prices, gold silver, gold today, gold usd, RSI, Slow Stochastic, Technical Analysis
