Technical analysis update: XAUUSD (23rd November 2021)

Updated
Yesterday we updated our previous idea on gold in which we stated that gold became overvalued in short-term. We also warned investors about possible retracement below the breakout level at 1835 USD. Just hours after our comments gold dropped to 1802 USD per ounce. Retracement invalidated bullish breakout which took place in the recent weeks. Because of that we became neutral to bearish in our stance on gold (in short-term and medium-term). However, in long-term we remain bullish and we think any significant drop in price represents attractive opportunity to buy more gold. Though, investors should be cautious as USD continues to strengthen and FED continues its taper and interest rate narrative. We will watch out closely for next monetary meeting of the FED on 14th and 15th December 2021 as it will provide more clues on underlying issues in the market.

Technical analysis - daily time frame
RSI is very bearish. Similarly, MACD and Stochastic are also bearish. DM+ and DM- performed bearish crossover, however, ADX contains low value which suggests that trend remains neutral.

Support and resistance
Major resistance sits at all time high of 2075 USD while major support lies at 1676 USD. Short-term resistance sits at 1835 USD. Resistance 1 is at 1877 USD and Resistance 2 is at 1916 USD. Resistance 3 appears at 1959 USD. Then Support 1 sits at 1750 USD.

Disclaimer: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.

Trade active
We deem recent drop in cryptocurrencies extremely bullish for gold. We expect a lot of money to flow out of cryptocurrencies into precious metal markets. We are very bullish on gold and we expect rise in price tomorrow. We will update our idea on gold tomorrow.
Chart PatternsGoldgoldtradinggoldusdTechnical IndicatorspreciousmetalsTrend AnalysisXAUGOLD/EURXAUUSD

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