Gold Price Analysis: Bulls head towards a monthly 50% mean reversion
- XAU/USD is moving deeper into resistance territory.
- Bears are watching for the formation of bearish structure.
Gold remains in the hands of the bulls, but there are prospects of a correction to the downside.
The following is a top dow analysis that illustrates the market structure and potential outcomes.
Monthly chart
The monthly chart shows the price is meeting a critical resistance zone.
Weekly chart
The weekly chart shows that the price is meeting a 38.2% Fibonacci level and the focus is on the prior resistance structure that would be expected to act as support on the downside.
Daily chart
However, there is a daily support structure that may thwart the weekly bearish outlook.
Given the support, then there is a focus on the upside for the meanwhile to target prior structures.
A 50% mean reversion is in focus which has a confluence with the prior structures looking left.
Reprinted from FXStreet_id，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.