GOLD is Parabolic but about to break down soon

XAUUSD has been trading inside a Parabolic Channel for 2 months. Such patterns technically end with a break down of the formation and pull backs to lower MA periods and Fibonacci levels. The parabolic state of Gold is evident on the overbought technicals both on the 1D and 4H time-frames (4H RSI = 72.910, MACD = 14.330, ADX = 59.897). The 4H RSI in particular shows clear exhaustion technically.

At the moment the 4H MA50 is rising almost parrallel to the bottom of the Parabola. A crossing below it targets the 0.382, where the first (short-term) buyers can be found. The 0.5 Fibonacci is a strong Support candidate since it has been a Resistance level three times and Support two times and is very likely to make contact with the 4H MA200 and 1D MA50 there. If the fall is more aggressive contact with the 1D MA50 could be made on the 0.618 Fibonacci, which is the golden ratio and strong medium/ long-term buying accumulation should be witnessed.


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