The Tide May Be Shifting for Gold as it Crosses Above Its 20 Day Moving Average

The Hourly View for Gold

  • At the time of this writing, XAUUSD’s price is up $0.24 (0.01%) from the hour prior.
  • Gold has seen its price go up 4 out of the past 5 hours, thus creating some compelling opportunities for bulls.
  • If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 50 hour timeframe.
  • Price action traders may also wish to note that we see some doji and pin bar candlestick patterns on Gold. Given that we see downtrend on the 20 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting.
  • The moving averages on the hourly timeframe suggest a bearishness in price, as the 20, 50, 100 and 200 are all in a bearish alignment — meaning the shorter duration moving averages are below the longer duration averages, implying a stable downward trend.

Gold’s hourly price chart is shown below.

XAUUSD

The Daily View for Gold

  • At the time of this writing, XAUUSD’s price is down $-21 (-1.21%) from the day prior.
  • This move is a reversal from the day prior, which saw price move up.
  • Regarding the trend, note that the strongest trend exists on the 50 day timeframe.
  • Regarding moving averages, it should first be noted that price has crossed the 20 day moving average, resulting in them so that price is now turning below it. The moving averages on the daily timeframe suggest a bearishness in price, as the 20, 50, 100 and 200 are all in a bearish alignment — meaning the shorter duration moving averages are below the longer duration averages, implying a stable downward trend.

Below is a daily price chart of Gold.

XAUUSD

Featured Gold Idea From TradingView

Below is a trading comment entitled Gold still within a Triangle / Keeping my Selling order you may find interesting:

Gold’s general commentary: As expected, Gold is so far holding the #1,722.80 – #1,732.80 belt intact and Hourly 4 chart’s Resistance is aswell stalling the uptrend. Gold is pricing it’s Higher Low first time after #12 sessions, and it is extending it’s Daily chart solid Channel Down range with #1,744.80 as the next Higher Low Resistance. Despite another session of DX Trading without a recovery, Gold is less affected as it continues to be more tied to Bond notes. Note how Gold holds it’s correlation with Bond notes almost on every aspect. Gold is once again used as a safe-haven asset as speculators are keeping the Buying bias alive, as DX and Bond notes aswell are not Trading on gains anymore / also without signs of a recovery, it was Natural to expect Buyers to re-appear with indicators on critical levels pointing to an eminent #10 point uptrend, but still, movement is within my model. As long as this variance continues, Selling sentiment will be postponed. Especially if the Fundamental announcements later this week also disappoint. I remain Bearish of course on Short-term with my previous levels unchanged, but just to secure my cap…

goldenBear88