XAUUSD-extreme divergence at support-risky setup

FX:XAUUSD   Gold / U.S. Dollar
1536 13 22
After a strong decline price is at extreme levels. Now price is testing a strong structure.

RSI is extremely oversold and MACD also, this is called "extreme divergence". Price should make a correction to release this divergence very soon.

Looking at price history we had a rally at this levels.

I saw this scenario many times. News in this case act as catalyst to release the divergence. Last days we had this scenario on AUDNZD             and EURGBP             .

This potential trade is RISKY because the reaction to the news is unexpected. I rely only on my own experience observing price at this levels and before the news.

Best regards.

Crashes happen from oversold conditions!
+2 Reply
Hello, thanks for sharing your view. The NFP news could clarify this setup, we need just to wait. Regards.
+1 Reply
I agree but i would enter long at 1086.50.
+1 Reply
I too am long from 1106..my SL is at 1093.. Thanks for your analysis
+1 Reply
Thank you for your sharing. It's good to learn from other experience.
+1 Reply
Hello, traders!

So far my analysis is 'paying off'. I am sure it can be use at your best interest!
XAUUSD - The funky path of gold.
KayJay InsideMarket
How can wave 4 has overlapped wave 1 in your wave C as it invalidates the count as wave c can be an impulse or ending diagonal only
+1 Reply
I am assuming it is an ending diagonal of a 'C' wave of a ZigZag of a 'X' wave.
look4edge InsideMarket
1070 or 1040 if terminal, could be start of nigger C down
+2 Reply
KayJay InsideMarket
ok if its an ED then it should contract or expand and also fit within a channel i guess ?
+1 Reply
KayJay InsideMarket

Can you check out my count and tell me where i might be wrong
These are now my Main counts:
GOLD - Long term Long - Alternate wave Counts
This is my just my idea that i don't think gold will continue going down. But other idea might be valid too.
Will GOLD start to rise or continues it way going deeper?
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