· Gold: Break above $1818 to confirm bearish exhaustion
Gold (XAU/USD) attempted a tepid recovery from near four-month troughs on Wednesday but faced rejection at higher levels and finished the day almost unchanged around $1807. The yellow metal treads water on Thanksgiving Day-quiet trading as Wednesday’s doji candle calls for indecision while $1800 holds, FXStreet’s Dhwani Mehta briefs.
See:
- Gold to end the uptrend on a break of critical $1,800 support – ABN Amro
- Gold to rally towards $2300 in 2021 – CIBC
“A lack of relevant macro news and holiday-thinned light trading could keep the investors on the sidelines, although some exaggeration in the moves cannot be ruled.”
“Bears are likely to see any bounce in the spot as a good selling opportunity following a big breakthrough the critical $1850 support earlier this week.”
“Gold remains within a familiar trading range, lacking a clear directional bias, as indicated by Wednesday’s doji candle. However, the risks remain skewed to the downside, with the $1800 level still in danger. The selling momentum could accelerate on a break below the 200-daily moving average (DMA) at $1798, opening floors towards May 18 high of $1765.”
“Wednesday’s high of $1818 needs to be taken out for the recovery to gain traction.”
· Gold supported at 1800 but bears are still in charge
Gold remains bearish despite support at 1800. Sellers are waiting at the POC zone.
A retracement towards 78.6-88.6 zone is good for sellers. We can also see an order block in addition to strong retracement zone. If we see a retracement towards 1825-30 watch for a renewed wave of selling towards 1816, 1812 and 1800. A break below 1800 and 1791 is next. As long as 1845 is safe, bears should not have any problems.
· How GOLD made biggest trap for Buyyers
The descending triangle is recognized primarily in downtrends and is often thought of as a bearish signal. As you can see in the above image, the descending triangle pattern is the upside-down image of the ascending triangle pattern. The two lows on the above chart form the lower flat line of the triangle and, again, have to be only close in price action rather than exactly the same.
The development of the descending triangle takes the same amount of time as the ascending triangle , and volume again plays an important role in the breakout to the downside. (Some analysts believe that increased volume is not all that important. We, however, believe it to be paramount. We always consider the strength or weakness of volume as being the "straw that stirs the drink."
Reference: FXStreet ,TradingView
Thai
Eng