Hello there, as you see in the chart, Gold in the hourly chart has a bullish divergence in RSI. as price is at support right now, and this support level has hold the price, besides volume is dropping too so we may see a reversal from this level. after this huge dump it might be risky to buy it but buying here gives us a good risk to reward ratio. so for going long on XAUUSD its better to wait for a confirmation. and in this case a good confirmation could be a break out of this falling wedge pattern (as you may know a falling wedge in a downtrend is more likely to break to the upside and forms a reversal pattern) so I think after breaking the falling wedge to the upside which is more likely to happen we can see a secondary drop the the support zone, a pull back to that area is absolutely for buying.
ps: in case of breaking the support zone this analysis will be invalid and it means that the downtrend will continue so then we should look for shorting opportunity.
$$ please note that this is not a financial advice, before entering any trade do your own research and do it at your own risk. $$
Thank you for your attention and good luck!
ps: in case of breaking the support zone this analysis will be invalid and it means that the downtrend will continue so then we should look for shorting opportunity.
$$ please note that this is not a financial advice, before entering any trade do your own research and do it at your own risk. $$
Thank you for your attention and good luck!
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