Gold Price Overextended: Is a Bearish Pullback Imminent?
XAUUSD Monthly and Daily Chart Analysis
In the monthly chart of XAUUSD, we observe a significant price overextension, where the market has been aggressively buying for several months. This type of upward momentum often signals that a correction or retracement could be approaching soon.
When we zoom into the daily chart, we notice signs that the price is ready to initiate a bearish move, at least a small downward correction. The market may begin to shift as buyers take profits or as sell orders increase in reaction to the extended price.
In the monthly chart of XAUUSD, we observe a significant price overextension, where the market has been aggressively buying for several months. This type of upward momentum often signals that a correction or retracement could be approaching soon.
When we zoom into the daily chart, we notice signs that the price is ready to initiate a bearish move, at least a small downward correction. The market may begin to shift as buyers take profits or as sell orders increase in reaction to the extended price.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.