XAU/USD Divergence Hinting Reversal

2 min read
Davin Wu

Davin Wu

Market Analyst and Educator

Dear Traders,

GOLD has formed a bearish divergence with price approaching an area of high confluence [D H5, W H4, +2/8] Bearish divergence happens when price makes a higher high while the oscillator makes a lower high.

POC zone is 1323-24 [D H5, W H4, +2/8] If we see a bearish rejection from this zone, first target will be 1300 [D L3, 5/8, Psychological Round Level] and subsequently 1295 [D L4, 4/8, W L3], with extended bearish momentum targeting 1277.34 [Previous Swing Low // -1/8].

Divergence is invalid if price closes above 1325 D H5. In which case we might see a bullish move towards 1338.20 W H5.

The analysis has been done with the
CAMMACD.MTF template.
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Many green pips,
Davin Wu aka AmbitionFX

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