Gold (XAU/USD) Technical Analysis – Detailed Insights

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1. RSI Analysis (Relative Strength Index)

The RSI is near 30, which indicates the market is approaching oversold levels.

This suggests a possible bounce or reversal if buyers step in.

If RSI drops below 30, expect further downside movement.


2. Moving Averages (50 MA & 200 MA)

50 MA is trending downward, confirming the bearish trend.

Price is well below the 50 MA and 200 MA, suggesting continued bearish momentum.

No immediate sign of reversal unless the price reclaims the 50 MA as support.


3. Fibonacci Retracement Levels

Based on the high of 2950 and low of 2885, the key Fibonacci retracement levels are:

23.6% Retracement: 2934.66 (Potential resistance)

38.2% Retracement: 2925.17 (Strong resistance level)

50% Retracement: 2917.50 (Mid-level resistance)

61.8% Retracement: 2909.83 (Key level for trend change)

78.6% Retracement: 2898.91 (Critical decision level)


Trading Strategy

Bullish Scenario (If price holds support & RSI rebounds)

Buy Entry: Around 2890 - 2893 (If price shows bullish rejection)

SL (Stop-Loss): Below 2885

TP1: 2909.83 (Fib 61.8%)

TP2: 2925.17 (Fib 38.2%)

TP3: 2934.66 (Fib 23.6%)


Bearish Scenario (If price breaks 2885 support)

Sell Entry: Below 2885 (If confirmed breakdown)

SL: Above 2898

TP1: 2875

TP2: 2865


Conclusion

Short-term: Bearish, but RSI suggests a possible reversal if buyers defend 2890.

Long-term: Still bearish unless price reclaims 2926.

Watch the Fib 61.8% level at 2909.83 for a potential short-term reversal.

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