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.

Ross J Burland FXStreet

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.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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