Gold Price Analysis: XAU/USD bears seek a continuation below key daily support
|- XAU/USD prices are back under pressure and below a critical trendline on the daily chart.
- The swing trading opportunities are caught up in the wash of volatility.
- A day trading strategy could offer an opportunity if price obeys market structure.
Gold prices have been in a chop, but reluctant to break higher beyond the mid-October highs, last printing a lower high on a daily basis and now breaking below the daily trendline:
Meanwhile, the bears are looking into the lower time frames for opportunities to the downside.
1-hour chart
Here, we illustrate how the XAU/USD price has reached a 50% mean reversion of the bearing impulse on the 1-hour chart.
This does not mean that the price has completed its correction, however, it is a significant development and compelling nonetheless.
At this juncture, bears can start to monitor the price action for a possible continuation to the downside.
15-min chart
Looking at the XAU/USD chart from a 15-minute perspective, the price remains in the bullish territory until the MACD crosses below zero, or another momentum indicator of choice, and the price crosses below the 21-moving average.
At that point, bears can monitor for a sell limit order, expecting a pullback to test what was prior support for a discount and position in a presumed continuation to the downside.
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