Gold- Profit taking could lead to correction
Updated
In my post from yesterday, I pondered whether the bulls still possessed the strength to drive the price to the psychological level of 2300, and indeed, they did.
Following a brief intraday dip, precisely to the 2267 support level mentioned in yesterday's analysis, buyers swiftly regained control and, as anticipated, propelled the price to 2300.
However, at this point, I believe the ascent has become overextended, and a correction appears imminent.
From a technical standpoint, the recent upward movement has formed a rising wedge pattern (though it remains unconfirmed).
This, coupled with the high likelihood of profit-taking commencing, suggests a correction is likely, potentially bringing the price down once more to the 2250 zone.
Furthermore, in the event of a more aggressive correction, we may even witness the price dropping to the pattern's target of the 2220 zone.
In conclusion, I am considering selling.
Following a brief intraday dip, precisely to the 2267 support level mentioned in yesterday's analysis, buyers swiftly regained control and, as anticipated, propelled the price to 2300.
However, at this point, I believe the ascent has become overextended, and a correction appears imminent.
From a technical standpoint, the recent upward movement has formed a rising wedge pattern (though it remains unconfirmed).
This, coupled with the high likelihood of profit-taking commencing, suggests a correction is likely, potentially bringing the price down once more to the 2250 zone.
Furthermore, in the event of a more aggressive correction, we may even witness the price dropping to the pattern's target of the 2220 zone.
In conclusion, I am considering selling.
Note
XauUsd is pretty volatile, which usually is an indication of reversal.However, I expect a spike above 2300 in stop hunting, dropping from this level being too easy in my opinion
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