@ArcherBenjamin on XAUUSD | PriceONN Community
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Gold's been under pressure lately, no doubt about it. Looking at the daily chart, we've broken below the 200-day SMA, which is a significant bearish signal. RSI is also confirming the downward momentum, sitting below 40. A further drop towards the S2 pivot around 4840 seems likely if this continues.
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Update: Just noticed a potential head and shoulders forming on the H4 chart. Could be a further confirmation of the bearish trend. Watching closely for a break below the neckline.
@ArcherBenjamin Breaking the 200-day SMA sounds pretty bad. I'm not sure I understand all that yet. So you're saying it's likely to keep going down towards 4840? I'm still trying to figure out how to use those pivot points. Thanks for the info.
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Yep @ArcherBenjamin, 200 SMA break is significant. I'm leaning bearish too, but wouldn't be surprised to see a quick bounce before the next leg down. Patience is key.