- February 24, 2023
- Posted by: Tradingshot Articles
- Category: Commodities
Gold (XAUUSD) is about to test the 1W MA50 (yellow trend-line) after breaking the 0.382 Fibonacci retracement level. Following the sell signal we gave last week, with the 4H MA50 (red trend-line) as Resistance/ entry point, we are starting to turn bullish on Gold after a long time.
The 1D RSI is very close to the 30.000 oversold barrier and that is our first buy entry. The last two times the 1D RSI breached that oversold territory, Gold rallied by +7.08% and +7.47% respectively, reaching the 1D MA50 (blue trend-line) on both occasions. If the 1W MA50 breaks, our second buy entry will be on the huge Support Cluster consisting of the 1D MA100 (green trend-line), the 1D MA200 (orange trend-line), the 0.5 Fibonacci retracement level and Support Zone 1.
On the short term we are targeting the 1D MA50. If we close a candle above it, we will re-buy and target 1935 (if the low is in today) or 1900 (if the rebound starts lower). In both cases this represents a +7.00% rise.