Yesterday, the XAU/USD pair reached a high of $ 1,912.63, a level that coincides with the extreme resistance of +1/8 of Murray.
From that level we saw a correction to the zone of 1890, more than 200 points, reaching the 21 SMA zone located at $1889. Gold is likely to rebound above this level.
Yesterday, in our analysis, we pointed out the imminent correction of gold, (XAU/USD). Since the eagle indicator had reached levels of 95 points showing an imminent downward correction, we invite you to review our article and obtain some more details.
On the 4-hour chart, you can see that gold is trading within an uptrend channel. The SMA of 21 is located in 1889. At this level, the line of the bullish channel converges. In addition to the 1889 key level, on previous occasions it has shown strong resistance, so we expect it to now act as strong support.
Therefore, if gold makes a technical bounce in the SAM 21 area around the very strong support at 1.889, it could be a good opportunity to buy with targets again in the zone of 1906.
On the contrary, a break of the uptrend channel and a break of the strong support of 1889, a level that coincides with the SAM of 21, will be a good selling opportunity with targets in 1875 (8/8) and can fall further down to Murray 7/8 around 1843.
The eagle indicator is showing a negative signal for gold, with a bearish bias, this could be a sign that gold could break the key level of $1,889.
Our recommendation is to buy if it rebounds in 1889, or if it consolidates and remains below 1885, you can sell, we have traced both objectives on the graph, below we leave our support and resistance levels for today and tomorrow.
Support and Resistance Levels for May 27 – 28, 2021
Resistance (3) 1919
Resistance (2) 1909
Resistance (1) 1900
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Support (1) 1886
Support (2) 1877
Support (3) 1870
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Trading tip for XAU/USD (gold) for May 27 - 28, 2021
Buy if above 1889 (SMA of 21 and trend line), with take profit at 1906 (+1/8), stop loss below 1883.
Sell below 1885 (SMA 21 and strong support), with take profit at 1875 (8/8) and 1843(7/8) stop loss above 1890.
The material has been provided by InstaForex Company - www.instaforex.com