XAUUSD: Megaphone formed. Where to buy and where to sell.

Following the break down of the November - January Parabola, Gold has entered into a Megaphone pattern with the 4H MA50 as its Pivot. The 1D time-frame turned overbought again (RSI = 71.525, MACD = 29.660, ADX = 45.402) but pay attention to the RSI which is on Lower Highs instead (Bearish Divergence) and helps at finding the tops and bottoms on the short-term.

Right now the price is near the top of the Megaphone, thus a sell opportunity for us, aiming the 4H MA50 pivot (1,935). Yesterday's rise started at the top of S1 (1,920) so this is where we will attempt a short-term buy, aimed at 1,975. Below S1 (1,910) we will cover it and sell to the top of S2 (TP = 1,897), with projected contact with the 4H MA200. Below the Megaphone's LL, we will again sell to the top of S3 (TP = 1,872.50) with projected contact with the 1D MA50.



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