XAUUSD Spot Gold ReversalOna 4H Chart XAUUSD has been trending down for 2 weeks from a double top at $2052 where
the Stochastic RSI put in a top at 100%. Price crossed above the upper Bollinger band before
its pivot high. As it trended down, it did retrace back up to the upper Bollinger band and then
resumed the downtrend heading outside the lower band and reaching a pivot low of $1954 on
Thursday, May 18th along with RS approaching zero. Price then reversed and put in an engulfing
bullish candle before closing out the trading week with a Doji. Price crossed through the black
trendline drawn onto the chart. The RSI indicator curled upward and is progressing to crossover
20. The volume profile shows the majority of the trading between $1992 and $2040 with the
mean at $2018. This would be the area of highest liquidity and volatility.
The Echo indicator (AI predictive tool of Luxalgo ) suggests a near-term rise in price and a
consolidation area of $ 1993 before another leg up into the high-volume area. Overall, I will
look to take a long position to begin the forex trading week upcoming as well as a gold ETF
such as GLD or even JNUG on the equities market.
