By Anton Eljwizat – Gold prices rose significantly in the last two weeks and peaked at $1156.30 an ounce. Gold reached its highest level in almost three months. However, the daily chart is suggesting that a recent upwards trend is loosing steam and a bearish correction is impending. Forex traders involved with commodities like this can take advantage of this knowledge by going short on gold now, and at a great entry price!
• Below is the daily chart for gold by ForexYard.
• The technical indicators used are the Slow Stochastic, RSI and Williams Percent Range.
• Point 1: The RSI signals that the price of this pair currently floats in the over-bought territory, suggesting downward pressure.
• Point 2: The Slow Stochastic indicates a bearish cross, which may signal a downward movement is going to occur in the near future.
• Point 3: The Williams Percent Ranges is showing that this pair is heavily over-bought and may be experiencing strong downward pressure.
Gold- Daily Chart
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
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