Although Gold mostly moved sideways today, closing up 3 points on the day. As price moved up in late afternoon trading, I did enter a short position for the following reasons:
1. Price has stalled well into the overbought upper Bollinger Band territory
2. Friday's shooting star followed by Monday's doji indicate to me that the upward momentum is waning
3. Tuesday's candle stopped right at the upper Bollinger Band but not above it.
4. haDelta daily indicator has been red for 2 days
As gold continues to sell off after hours, I will be watching price reaction at the 7 day moving average at 1283.40. If price breaks through that level, I'll be looking for a continued move down to 1261.60, the mid point on the Bollinger Bands.
Baring an unexpected sell-off, it'll take another couple of days for the Heikin-Ashi candles to turn red.