- March 7, 2023
- Posted by: Tradingshot Articles
- Category: Commodities
Gold (XAUUSD) got a massive rejection following Powell’s comments on the potential of higher interest rate hikes. It hit the Symmetrical Support level of the Inverse Head & Shoulders pattern we outlined on our previous analysis and so far seems to be rebounding. A potential Channel Up gives room for some more decline before an eventual recovery.
The 4H RSI just breached into the oversold territory and as it was a sell last Friday when it was overbought, so is a buy opportunity now that it is oversold. If broken, the final level of long-term Support is the 1W MA50 (yellow trend-line), which provided the Support and big bounce last week. Our target is the 4H MA200 (orange trend-line), with a projected extension targeting 1860.