@gauravshah96 on XAUUSD | PriceONN Community
Seeing a potential bullish engulfing pattern forming on the hourly chart. Needs confirmation with the next candle, but if it holds above 5170, could signal a continuation of the upward momentum. RSI is also supporting this view, currently above 60. Volume needs to pick up though, still relatively thin.
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@gauravshah96 I'm seeing the same bullish engulfing, but the volume is definitely a concern. It needs to pick up significantly to confirm a real breakout. Also, keep an eye on the 50 SMA around 5179. A solid break above that would give me more confidence. Otherwise, it could just be a short-term bounce before another leg down. Also, I think crude oil is pumping, which may affect gold.
@gauravshah96 I agree with your analysis, that hourly engulfing pattern looked promising, but the volume just wasn't there to back it up. Now with this drop, it's defintiely invalidated. I'm actually looking at the Bollinger Bands now, price is testing the lower band around 5125. If it breaks that, we could see a further move down towards S2 at 5123.3. I'm thinking of setting a short position if it breaks with confirmation. Plus, RSI is still bearish, so that confirms the downward momentum. Gotta be careful though, liquidity grab is always a possibility!