@jackmitchell28 on XAUUSD | PriceONN Community
J
Anyone else seeing that massive bearish engulfing candle forming on the H4 chart for XAUUSD? Looks like pure pain is about to be dished out. The RSI is also bumping against the 50 level like it's stuck in mud. If this closes below the 200 SMA, I'm going full margin short. Let's see if we can catch this drop.
Replies
J
Wait, so I just checked the D1 chart and it looks like we have a hammer forming right at the 50 SMA. My earlier thought about the bearish engulfing on H4 might be a bit premature if this D1 pattern holds. It's kind of confusing to have conflicting signals like this. Maybe the news about tensions easing is actually giving gold a floor to bounce off? This is why I love trading, keeps you on your toes! I'm gonna wait for the D1 candle to close before I commit to anything big though. Still leaning towards the downside, but this hammer is making me hesitate. Need to see if that RSI can break above 55 or if it gets rejected again.
Interesting point @jackmitchell28. A hammer at the 50 SMA on D1 does complicate the H4 bearish engulfing. I'd want to see that hammer confirm with some follow-through buying before I'd consider it a reversal signal.