- July 8, 2022
- Posted by: Tradingshot Articles
- Category: Commodities
Gold (XAAUSD) broke this week below the 30.000 1D RSI for the first time since August 2021. It was only a week ago when we warned of this potential collapse based on the following 1M (monthly) structure:
Now on this 1D time-frame analysis, we see that following the 1D Death Cross (when the 1D MA50 (blue trend-line) crosses below the 1D MA200 (orange trend-line)), this isn’t as unexpected and follows very closely the sell-off Gold had after the February 15 2021 1D Death Cross. As a result, even though the price has crossed below the 2 year buy level (1760), it is very likely to see one last flush to the 1680 Support before a new trend emerges. Especially considering the high volatility that today’s Nonfarm Payrolls report (NFP) usually brings to the table. A consolidation next month within this zone is possible according to the 1M study, so consider the risks when proceeding to long-term buying.