15.05.2024 06:14 PM
Trading Signals for GOLD (XAU/USD) for May 15-17, 2024: sell below $2,375 or buy if rebounds at $2,354 (21 SMA - 6/8 Murray)

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Gold is trading around 2,368 below 6/8 Murray with strong volatility following the US inflation data. Given that Gold is overbought according to the H4 chart, a technical correction will follow in the next few hours and the metal could reach the 21 SMA located at 2,354.

If gold continues its fall and finds support around 2,354, where the 21 SMA is located, it will give the instrument a good technical rebound.

If XAU/USD continues to fall, it could drop to 2,345, the level that coincides with the bottom of the bullish trend channel. This will be seen as an opportunity to resume long positions with targets at 2,375. Finally, gold could cover the GAP left on April 18 at 2,392.

If gold falls and consolidates below 2,340, the outlook could be negative and we could expect a bearish acceleration to the psychological level of $2,300 or to the 200 EMA at 2,303.

Technically, we expect gold to make a technical correction in the next few hours. So, we will look for opportunities to sell below 2,375, with targets at 2,354 and 2,345.

After the bearish and overbought pressure is relieved, the price will have a technical rebound above 2,345 or 2,354. This will be seen as a positive signal and we will look for opportunities to buy. But if the price breaks this zone, we could put a stop loss or wait for a change in the trend to occur.

The eagle indicator reached 95 points which signals an imminent technical correction. Therefore, according to this signal, it is better to make a trading decision to sell at the current price level below 2,375 and then resume buying.

Dimitrios Zappas,
Analytical expert of InstaForex
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