- 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.
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.
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.