Gold prices rose significantly in the last three months and peaked at $1352.60 per barrel. However, the weekly 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 weekly chart for gold by ForexYard.
• The technical indicators used are the Slow Stochastic, RSI and Williams Percent Range.
• Point 1: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.
• Point 2: The RSI signals that the price of this pair currently floats in the over-bought territory, suggesting downward pressure.
