Gold Technical Analysis: A short-term squeeze is acceptable
Gold underwent 1.5 months of strong 'selloff", last week we saw Gold set up new YEAR LOW at 1053
Today, Gold bounces back from the new year low to the old year low.
We will watch the reaction of GOLD around this level. Watching RSI and Stoch indicators, I see they escaped the oversold zone. After a long time lying in oversold zone, a short term retracement is allowed. If Gold breaks the old year low, an advance to the resistance at 1100 is acceptable.
I think SELL XAUUSD at 1100 is a good option.
Today, Gold bounces back from the new year low to the old year low.
We will watch the reaction of GOLD around this level. Watching RSI and Stoch indicators, I see they escaped the oversold zone. After a long time lying in oversold zone, a short term retracement is allowed. If Gold breaks the old year low, an advance to the resistance at 1100 is acceptable.
I think SELL XAUUSD at 1100 is a good option.