- September 26, 2022
- Posted by: Tradingshot Articles
- Category: Commodities
Gold (XAUUSD) following the rejection on the 4H MA50 (blue trend-line), which is the short-term Resistance, hit and even marginally broke today, the bottom (Lower Lows trend-line) of the Channel Down since the August 10 High, which technically defines the medium-term bearish trend.
The recent Lower Lows though have been formed while the RSI on the 1D time-frame has been holding its Support Zone. The last time we saw that pattern was during the July 06 – July 21 Lower Lows. The RSI then bounced on its Support Zone and Gold rallied to its 0.618 Fibonacci level that was eventually the August 10 High.
As a result, we are willing to buy today’s bottom rebound on what seems to be the early stages of a short-term rally. We are setting short-term targets and only if broken we’re willing to move to the next one as the long-term trend remains bearish. As such the first would be the 4H MA50 (blue trend-line), following by the top (Lower Highs trend-line) of the Channel Down. If we close a day above it, then we can move to the 4H MA200 (orange trend-line) and the 0.618 Fib (1738.50) in extension.