XAUUSD | Inverse Head & Shoulder | Bullish Divergence
Updated
Currently, the XAUUSD (gold) chart is showing the formation of an Inverse Head & Shoulders pattern, which typically suggests a potential reversal to the upside in price. This pattern is considered bullish. Additionally, there is a hidden Bullish Divergence observed on the Relative Strength Index (RSI), further supporting the expectation of an upcoming uptrend.
In the 1-day timeframe, the XAUUSD price has been rejected five times from the 1930/1934 zone, which acts as a strong resistance level. For confirmation of a bullish uptrend, it would be necessary for the daily candle to close above $1937, indicating a breakthrough of the resistance level. It's worth noting that there is a strong support zone at $1900 and minor support levels at $1910.
However, when considering the bigger picture on the weekly timeframe, XAUUSD is still in a bearish zone and may be undergoing a simple pullback. This means that the overall trend may still be bearish, but the shorter-term patterns indicate the potential for a temporary upward movement.
It's important to remember that the analysis provided represents my perspective, and it is recommended that you conduct your own research and due diligence (DYOR) before making any trading decisions. Market conditions can change rapidly, so staying informed and considering multiple factors is crucial for successful trading.
In the 1-day timeframe, the XAUUSD price has been rejected five times from the 1930/1934 zone, which acts as a strong resistance level. For confirmation of a bullish uptrend, it would be necessary for the daily candle to close above $1937, indicating a breakthrough of the resistance level. It's worth noting that there is a strong support zone at $1900 and minor support levels at $1910.
However, when considering the bigger picture on the weekly timeframe, XAUUSD is still in a bearish zone and may be undergoing a simple pullback. This means that the overall trend may still be bearish, but the shorter-term patterns indicate the potential for a temporary upward movement.
It's important to remember that the analysis provided represents my perspective, and it is recommended that you conduct your own research and due diligence (DYOR) before making any trading decisions. Market conditions can change rapidly, so staying informed and considering multiple factors is crucial for successful trading.
Trade active
Trade closed: target reached
TP 1 : HitTrade closed: target reached
TP2: HitTrade closed: target reached
TP3: Hit
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