Gold – nice opportunity to short

On the XAU/USD (spot Gold) daily chart they were created 2 nice bearish PIN bars over the last two days. Both days price tried to go up, but higher prices were always rejected and it appeared here pretty bearish activity that always drove price back down.

PIN bars are additionally formed in the direction of longer-term downtrend, around the price 1240.00, which is an important S/R level that is clearly visible on the Daily timeframe. This promoted the importance of these PIN bars.

So we have here a signal to sell, which is in the direction of the longer-term trend, it is created at important S/R level and the candles themselves are very well defined – for me this is a clear signal to sell.

Of course, the PIN bars may be rejected and the price would continue to rise. But there is a high probability that the price will drop down from these PIN bars somewhere to important support level around 1170.00.



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