empty
 
 
03.02.2023 01:39 PM
Trading Signal for Gold (XAU/USD) for February 3-6, 2023: sell in case of pullback at $1,927 (21 SMA - 7/8 Murray)

This image is no longer relevant

Early in an American session, gold is trading around 1,909.77. We can see on the 4-hour chart that it is trading below the 21 SMA (1,925) and below the 7/8 Murray (1,937).

Yesterday, gold made a strong technical correction after reaching a new high around the area of 1,959. In our previous analysis, we noted that gold touched the top of the bullish channel and a technical correction followed later. We expected gold to go ahead with this sharp decline.

In case XAU/USD breaks below the psychological level of 1,900, it could continue to fall towards the 200 EMA located at 1,880 and could even fall towards the 6/8 Murray at 1,875.

Conversely, in case there is a pullback towards the weekly pivot point or the daily pivot point located around 1,925 to 1,929, it will be considered an opportunity to resume selling with targets at 1,910 and 1,880 (200 EMA).

For gold to resume its bullish cycle, we should wait for consolidation above 1,930. Then, it could reach the 1,959 zone again. It could even reach the weekly resistance at 1,966.

Our trading plan for the next few hours is to sell gold if it trades below 1,927 with targets at 1,900 and 1,875 (6/8 Murray). The eagle indicator is giving a negative signal and gold is likely to find solid support and we could wait for a technical bounce and then sell.

Dimitrios Zappas,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback