XAUUSD - maybe it's time to sell?

Hello everyone!

We continue trading gold. However, I think it’s time to prepare for selling. Today, gold is near its historical high, and I don’t think the bulls will be able to push through in the upcoming sessions. After breaking through the strong resistance level of 2720, gold has gained more than 2.5% over just a few sessions. At the same time, trading volumes have been decreasing with each session since the breakout. There are also few fundamental reasons for gold to rise further at the moment. Therefore, it’s possible that the 2790 level may not be overcome.

On the 8-hour timeframe, RSI is overbought, and on the daily chart, RSI is above 70. Unfortunately, there’s no clear divergence, which would have given more confidence.

H8



Day


If we turn to wave analysis, it can be assumed that gold is currently in the 4th wave, which might take the form of a triangle. Of course, this is just an assumption, but I don’t think wave 4 has been completed yet. Similarly, I don’t believe gold will update the 2540 low anytime soon.

If a triangle is forming, then from the current levels, a movement in wave ((C)) of the triangle is possible, targeting 2655, with an intermediate target at 2720, where the support level is strong. I don’t think the bears will be able to break through it immediately.

2D



But there’s no need to rush into opening a short position. It would be better to see a false breakout of the 2790 level and a pullback below it, which would allow for greater confidence in opening a short position.



Likes and comments welcome :-)