GoldMondayLow - Up or Down

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.


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