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Trading Gold to the Downside.  Stochastics on XAUUSD Overbought.

   

Welcome to this week’s Market Blast Technicals.

I’m Brad Alexander and on behalf of Valutrades let’s take a look at Platinum (XPTUSD), USDJPY, and Gold (XAUUSD).

 

Yesterday we looked at gold from the fundamental standpoint and the market still sees downward pressure even though price has risen above $1800.Screenshot 2021-02-23 at 11.13.42

From the technical view, we see price at the upper trend line in this bearish run so we will wait for confirmation before going short.

For this, we can wait for a bounce or use another technical indicator like the Stochastic Oscillator which is now showing Overbought.

We can also add another like the Parabolic SAR and wait for a bearish signal.

If you want to know more about how to use these indicators, I’ve added a link at the end of this video.

https://www.valutrades.com/how-to-spot-setups-and-trade-currency-using-rsi-macd-stochastic

Last week we looked at USDJPY on the daily chart and how price action broke the year-long downtrend.Screenshot 2021-02-23 at 11.13.56

On today’s 4 Hour chart, we see price just touching the lower trend line and the Stochastic Oscillator showing Oversold.

However, please watch the fundamentals on the USD as the US Congress should be voting on the next COVID stimulus package this week.Screenshot 2021-02-23 at 11.14.13

Last week as well we looked at the rise in Platinum and we see that price did, in fact, rise, but we are now seeing a consolidation pattern in this symmetrical pennant.

Thanks for watching and don’t forget to subscribe to our YouTube Channel and register on the Valutrades website to get notifications on new content as it happens.

That’s all for now.  Happy trading with Valutrades and we will see you later in the week with our trading tips video.

CFDs and FX are leveraged products and your capital may be at risk.

Disclaimer:

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.

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