Solid confirmation of my medium-term bearish perspective.
As discussed on Friday, the pattern formed was a Head and Shoulders, which is technically a top formation pattern.
As the 4H MA50 broke (1,754.58), Gold dived more and is approaching the former Resistance Zone of 1,735 - 1,729.50, which will be tested as a Support for the first time.
The 1D technicals are now low bullish tier approaching neutral (RSI # 58.533, MACD # 24.660, ADX # 34.509) and despite the fact that the 1D MA50 (1,681.35 and rising) is the typical Support on uptrends, the fact that the 4H MA50 hit 40.000 already and is approaching the 30.000 oversold barrier, is good enough of a condition for me to enter a buy positions again.
My target is the 1D MA200 (1,801.59). If 1,729.50 breaks, I will go on an intra day only sell (keeping the buy at the same time) and targeting 1,705.
On a long-term perspective I will only add a 2nd buy on the 1D MA50.
Keep in mind that it is mostly the short-term rebound on the DXY that is driving Gold's price down, as the US10Y remains below its 1D MA50. All prices mentioned on my analysis are on XAUUSD.
As discussed on Friday, the pattern formed was a Head and Shoulders, which is technically a top formation pattern.
As the 4H MA50 broke (1,754.58), Gold dived more and is approaching the former Resistance Zone of 1,735 - 1,729.50, which will be tested as a Support for the first time.
The 1D technicals are now low bullish tier approaching neutral (RSI # 58.533, MACD # 24.660, ADX # 34.509) and despite the fact that the 1D MA50 (1,681.35 and rising) is the typical Support on uptrends, the fact that the 4H MA50 hit 40.000 already and is approaching the 30.000 oversold barrier, is good enough of a condition for me to enter a buy positions again.
My target is the 1D MA200 (1,801.59). If 1,729.50 breaks, I will go on an intra day only sell (keeping the buy at the same time) and targeting 1,705.
On a long-term perspective I will only add a 2nd buy on the 1D MA50.
Keep in mind that it is mostly the short-term rebound on the DXY that is driving Gold's price down, as the US10Y remains below its 1D MA50. All prices mentioned on my analysis are on XAUUSD.