Careful on PGOLD. Oversold but no strong signal yet for reversal

Looks like a successive panic selling on PGOLD for the past few days which brought the price to 40 although it managed to close at 41.5 per share today. The price action today ended with a Hammer. It is a reversal pattern but quite weak. Plus the fact that it is red adds to the already weak reversal pattern. The panic selling brought the RSI or Relative Strength Index to oversold level. This is interesting to watch.

Ichimoku system shows that PGOLD is still in bearish mood with Tenkan Sen moving below Kijun Sen and price inside the Kumo. Not to mention Chikou Span is also showing us the same sentiment. A test buy may not hurt so much if the price will continue to go down. You may also wait for a green signal from any Ichimoku element.


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