@calmShore9 on XAUUSD | PriceONN Community
Good morning, everyone. Looking at XAUUSD this morning, I'm seeing a potential descending triangle forming on the H4 chart. The price has been making lower highs while finding support around the 4400 area. This pattern often precedes a bearish continuation, especially if we break below that support level decisively. I'm keeping an eye on the RSI as well; it's hovering around 50, which is neutral for now, but any move towards the oversold territory on a break would add conviction to the downside.
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However, if the price manages to break above the descending trendline and hold above the 50 SMA around 4433, then the bearish outlook from the triangle pattern would be invalidated. In that scenario, we might see a rally towards the R1 pivot at 4448. The current geopolitical news is a bit mixed; while tensions seem to be easing, which could weigh on gold, any sudden re-escalation would obviously change the narrative completely. For now, I'm favoring the technicals and watching that triangle for a clear signal.
If that triangle breaks to the downside, I'll be looking to enter a short position targeting the S2 pivot point at 4404.72.
@calmShore9 That descending triangle sounds scary! I'm new to this and seeing patterns like that makes me really nervous. Especially with the price already below the 20 and 50 SMAs, it feels like a break down is more likely. I'm just watching and hoping I didn't get into a bad position earlier.