Gold bullish divergence and a possible reversal from here
Hello there, as you see in the chart, Gold in the hourly chart has a bullish divergence in RSI. as price is at support right now, and this support level has hold the price, besides volume is dropping too so we may see a reversal from this level. after this huge dump it might be risky to buy it but buying here gives us a good risk to reward ratio. so for going long on XAUUSD its better to wait for a confirmation. and in this case a good confirmation could be a break out of this falling wedge pattern (as you may know a falling wedge in a downtrend is more likely to break to the upside and forms a reversal pattern) so I think after breaking the falling wedge to the upside which is more likely to happen we can see a secondary drop the the support zone, a pull back to that area is absolutely for buying.
ps: in case of breaking the support zone this analysis will be invalid and it means that the downtrend will continue so then we should look for shorting opportunity.
$$ please note that this is not a financial advice, before entering any trade do your own research and do it at your own risk. $$
Thank you for your attention and good luck!
ps: in case of breaking the support zone this analysis will be invalid and it means that the downtrend will continue so then we should look for shorting opportunity.
$$ please note that this is not a financial advice, before entering any trade do your own research and do it at your own risk. $$
Thank you for your attention and good luck!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.