Divergence and Rising Wedge Hinting Bearish Rejection from POC

2 min read
Davinwu

Davinwu

Forex broker

Dear Traders,
GOLD has formed a bearish divergence with price bearishly rejected from the POC zone. Bearish divergence happens when price makes a higher high while the oscillator makes a lower high. Coupled with a completed rising wedge, this could signal a bearish sentiment for GOLD looking ahead.

The POC zone is 1307.43-53 in confluence with [+2/8 // D H4 // W H3]. Targeting 1295.00 [D L5 // 3/8 // W L3] zone. Now is a good point to enter as bearish engulfing H1 candle has already confirmed bearish sentiment with high probability of continuation.

Have in mind that price needs to stay below 1308.60 for divergence to remain stable.

A move below 1295.00 would signal additional bearish strength and an extended target of 1290 area, [1/8 // W L4]

The analysis has been done with the CAMMACD.MTF template.
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Cheers and trade safe,
Davin Wu
Elite CurrenSea

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