Short

XAUUSD - Dead Cat Bounce Incoming

Yo fam, did you see gold (XAUUSD) take a proper beating last Friday? Not ideal. But hold tight, with a drop that size, we might see a ting called a dead cat bounce in the next few days.

Now, this dead cat bounce is a tricky one. It's like a small price jump that makes you think things are getting better, but then bam! Downward trend keeps on rolling.

Here's a breakdown of the concept:

Short-lived upswing: The bounce is temporary, meaning the price rise doesn't hold and the decline resumes.

Misleading rally: It can be misleading to investors, appearing like a reversal of the downtrend but ultimately proves to be a false signal.

Downtrend continuation: The dead cat bounce is considered a bearish continuation pattern in technical analysis, signifying the downtrend is likely to continue.

RaheemUSD

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