XAUUSD: Market analysis and strategy for October 27.Gold Technical Analysis
Daily Resistance: 4210, Support: 4000
4-Hour Resistance: 4140, Support: 4005
1-Hour Resistance: 4100, Support: 4015
After hitting a record high last week, gold prices have retreated, dropping over $300. Friday's close confirms the onset of a weekly downturn.
In terms of indicators, the RSI has begun to fall back below the 80 level, and on the daily chart, it has even broken through the 4050 bull-bear dividing line. The MACD fast and slow lines have formed a death cross, and the green momentum bar is declining with increasing volume. In short, it's clear that the broader cycle is quietly turning, or more accurately, the upward trend is pausing.
From the hourly chart, today's Asian session opened sharply lower. This is partly a reaction to weekend news, and partly due to the inherent weakness of the market, which requires adjustment. The subsequent rebound failed to even break the upward closing gap, and then began a rapid decline. This is the result of bearish dominance.
The 1-hour chart is currently in a bearish flag consolidation pattern. The 4000 level is likely to be retested or even broken, so today's strategy is to sell high and buy low.
SELL: near 4100
SELL: near 4140
BUY: near 4005
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