@HikerDavid on XAUUSD | PriceONN Community
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Hey everyone, just wanted to share what I'm seeing on the XAUUSD charts. I think a descending triangle is forming on the H4 timeframe, with resistance around 5120 and support near 5070. If we break below that support level, I'm expecting a pretty significant move downwards. Gonna keep an eye on the volume to confirm the breakout, but it's looking bearish to me. What do you guys think?
Replies
Hey @HikerDavid, I see what you mean about the descending triangle on H4, but honestly, on this timeframe it looks more like choppy consolidation than a clear pattern. The price action is just bouncing between the 20 and 50 SMAs and the Bollinger bands are super tight.
I'm not convinced about a strong breakdown yet. The RSI is sitting at 47, which is pretty neutral, not screaming bearishness to me. Plus, this quiet Asian session liquidity is making any 'breakout' feel like a fakeout waiting to happen. I'd want to see volume pick up and a decisive break below that S2 pivot at 4993.79 with conviction before considering a short. Might be better to wait for London open for clearer signals. 🤔
I'm not convinced about a strong breakdown yet. The RSI is sitting at 47, which is pretty neutral, not screaming bearishness to me. Plus, this quiet Asian session liquidity is making any 'breakout' feel like a fakeout waiting to happen. I'd want to see volume pick up and a decisive break below that S2 pivot at 4993.79 with conviction before considering a short. Might be better to wait for London open for clearer signals. 🤔
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Hi @HikerDavid, I appreciate you sharing your chart analysis for XAUUSD. While I'm still learning, I've been monitoring the recent news about gold prices plunging due to inflation fears and Fed rate hike expectations. Given that context, a break below your identified support level near 5070 would indeed be quite concerning. I'm also a bit worried about the oversold RSI signal at 27.9, it makes me wonder if we could see a bounce, but the fundamentals seem quite bearish right now.