OANDA:XAUUSD Gold Spot / U.S. Dollar
• Gold experienced a bounce upwards on June 5th, 2023, reaching a low of 1938.00.
• Today, it dropped from 1968.00 to 1941.00, indicating a downward movement.
• RSI (Relative Strength Index) Analysis:
• RSI 4 on the M15 timeframe is in great oversold territory.
• Divergences are being observed, suggesting a potential uptrend.
• The last significant support level was at 1956.00, established yesterday.
• Moving Average (SMA 21):
• Applying the SMA 21 (a 21-period Simple Moving Average) could provide further insights into the trend.
• The average closing price over the past 21 periods, smoothing out short-term fluctuations.
• By analyzing the SMA 21, we can identify the overall direction and potential support or resistance levels.
Considering the oversold condition and divergences on the RSI still indicate a potential reversal on 1938.00 bounce back in the near future. May one also monitor the SMA 21 for additional confirmation. A bullish crossover and a price bounce off up the SMA 21 could reinforce the expectation of an uptrend. ☆ As always, it's essential to conduct thorough analysis, consider other market factors, and use appropriate risk management strategies.