RLinda ! GOLD-> The appearance of bearish signals

٢٠ نوفمبر ٢٠٢٢

Gold is testing the trendline resistance formed since September 1, 2022. The price has not reached the daily MA-200, at the same time a false break of the upside resistance, horizontal resistance of 1765.575 and a bullish signal from the Gartley pattern is formed.


(Chart 1. Daily timeframe)

Gold closed Friday's afternoon candlestick in its lows, which can be interpreted as an incomplete move that might continue. Therefore, it looks like the price will get weaker. At the same time, gold's fall was helped by a stronger dollar and rising 10-year government bond yields (10-year U.S. bond yields rose 5 basis points to 3.821%. )

The drop came as the dollar rose after an early weakening, making the precious metal more expensive for international buyers. The ICE dollar index rose 0.25 basis points last time out.
Nevertheless, gold remains near a three-month high as investors count on the Federal Reserve not to raise interest rates.


(Chart 2. Daily Timeframe. Bullish Signal Formation using the "Bat Pattern" as an example)

Technical Analysis:

• Gold continues to experience pressure from the resistance in the form of the daily MA-200, the price is in an upward range.
  
• The price makes a false break of the strong resistance zone and forms a decline, also a bullish signal is indicated by the presence of a bearish Gartley "Bat" pattern
  
• The daily Gartley pattern is a pullback to 0.889 (ideally 0.886) from the XA movement. A signal for a bullish move.
  
• Daily RSI gives a bearish signal, the price indicator on the chart also coincides with it
  
• The daily MACD tends to the crossover point of the sliders, at the same time the chart fades after the green spike, indicating a corrective movement.
  

(Chart 3. 4-hour timeframe XAUUSD. Formation of the pattern H&S)

On the above chart we also see a false break-through of the resistance 1765.575 and at the same time a strong bearish pattern "Head & Shoulders" is confirmed. I expect that from the session opening there can be a small pullback to the previously broken support of the pattern with the subsequent fall towards the support level of 1727.85

Sincerely R. Linda