Prices rose significantly in the last two months and peaked at $1381.50 an ounce. However, the 8-hour chart is suggesting that the recent up 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 crude oil now, and at a great entry price.
Below is the 8-hour chart for gold by ForexYard.
The technical indicators used are the Slow Stochastic, RSI and Williams Percent Range.
Point 1: There is a “doji” candlestick formed in the chart, indicating that a reversal should take place.
Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.
Point 3: The RSI signals that the price of this pair currently floats in the over-bought territory, suggesting downward pressure.
Point 4: Williams Percent Range also supports the downward direction.
Gold 8-Hour chart