Hodl, dear members of LeoFinance!
Usually, I talk about the charts of the different cryptocurrencies. But sometimes I make exceptions and analyze the charts of other important assets. And, because, in the crypto world, most people talk about Bitcoin aka Digital Gold, today let us have a look at pure Gold and what is going on with its price.
So, let me start with the monthly time frame (MN), where XAU/USD formed a couple of typical bearish candlestick formations which form at the end of an uptrend, according to Technical Analysis theory. The first one is the Bearish Engulfing that formed in June 2021 and the second one is the Shooting Star candlestick that formed in November 2021:
Interestingly these two bearish formations have not been able to reverse the trend so far. Moreover, a bullish candlestick formed in December, indicating that the bulls are trying to gain control over the market and revoke the negative/bearish signals.
Next, the weekly time frame (1W) brings some positivity as well. XAU/USD has formed a Symmetrical Triangle:
According to Technical Analysis theory, this triangle is a common trend continuation pattern. So, the chance of resuming the uptrend is relatively high. That's why let's wait and see in which direction the price will exit the triangle. We will see very soon, because, as can be seen from the chart the price is almost at the end of the triangle.
Next, the daily chart (1D) is quite tricky as well. XAU/USD has been consolidating for several months at the three key Moving Averages (MAs). Namely, at the 30-day Moving Average (MA 30), the 90-day Moving Average (MA 90), and the 360-day Moving Average (MA 360):
Moreover, we see that these key MAs are almost at the same level and are moving sideways. This is a clear signal that XAU/USD is at a crossroads.
The 4-hour chart (4H) of the price of Gold is quite interesting as well. XAU/USD was moving downwards within a Descending channel (downtrend):
But, recently a breakout took place and the price has exited the channel/or is trying to exit the channel. It is an initial signal that the bulls are trying to put an end to this bearish pressure and reverse the trend.
Moreover, in the 1-hour chart (1H), the bulls are starting to draw an Ascending channel (uptrend):
So, I am really curious about the recent price developments of Gold, and if this time the buyers' attempt to resume the uptrend in the heavier time frames (1D, 1W) will be successful.
To be continued ...
As of the time of writing, one troy ounce of Gold (XAU) costs $1796,63 on the OANDA exchange, according to TradingView.
A few words about me:
Just to let you know: I've been working professionally as a currency analyst for the last 15 and a half years and as a cryptocurrency analyst for the last 4 and a half years.
Important!
Keep in mind, that thoughts expressed here are my own, and they should not be regarded as recommendations for any cryptocurrency/commodity trades, investments and etc.
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