Gold Forms Daily Pin Bar Sell Signal at Key Level

Verified Profitable Trader

Gold – Daily Pin Bar at Key Level
After an impressive run up from 1240 to 1284, Gold found a combination of sellers along with medium term bulls taking profit, and in the process forming a daily pin bar. You will notice how the structure of the consolidations was pretty consistent on the first two breakouts, but the third one was really tight, suggesting a possible transition after the breakout (blue boxes in chart below).

The impulsive selling from the 1284 key level is the first time a pullback has taken out the prior consolidation lows, also lending itself to a bearish picture short term.

Our Trade Idea: Short term we are maintaining a bearish bias in light of the price action structural changes discussed above. Conservative traders can look for pullbacks to around 1274-1278 to get short, while more aggressive traders can look to sell under 1273. Downside levels to watch are 1265 and 1257.


Check out our How To Guide on Trading Forex in Summer

Want More? My private members get all my trade ideas & market commentary 4x per week. Click here to become a member.

Related Article