Gold: Bearish Rising Wedge Analysis 1D (May 27)

X Force Global Analysis:


In this analysis, we explore the bearish signs provided in Gold's daily chart through technical analysis.

Analysis

- The first thing we spot is a bearish rising wedge pattern
- We are currently testing the ascending support line of this pattern
- Along with the bearish pattern, we can also see a textbook bearish divergence, with prices forming higher highs and indicators forming lower highs
- The Relative Strength Index (RSI) shows a clear downtrend
- The Moving Average Convergence Divergence (MACD) has also formed a death cross, showing increasing bearish histograms
- Prices are currently testing the 20 Simple Moving Average (SMA), and a break and close below this moving average could confirm a bearish trend


What We Believe

We believe that technicals demonstrate a high bearish probability. While the extent of the correction may not be as severe, a break down from the ascending bearish wedge is anticipated.

Trade Safe.