Gold – Engulfing Bar Showing Sellers’ Dominance

16 Jul - Gold Daily Forex Chart

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Hi All,

Just a quick update on Gold. This precious metal tested the 1331 Resistance level a few days ago but it did not give any convincing price action (I would much prefer a bullish trend bar closing above that level).

Unfortunately, because we did not get a bullish signal, the sellers saw it as an opportunity and they decided to take control. The Bearish Engulfing bar on Monday was a long and strong engulfing bar. On top of that, price sank through the side way market to close below it. I believe is sufficient to show dominance in the market.

With that, I plan to look for more short setups moving forward.

 

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