HomeContributorsTechnical AnalysisXAUUSD: In Bearish Correction With Key Levels on H4

XAUUSD: In Bearish Correction With Key Levels on H4

  • Bullish scenario: Intraday buys above 2160.00 with TP: 2171 and TP2: 2177, with S.L. below 2155.00 or at least 1% of account capital*. Apply trailing stop.
  • Bearish scenario: Sells below 2177 with TP1: 2150, TP2: 2142, and 2126 with S.L. above 2185 or at least 1% of account capital*.

Scenario from the H4 chart:

The trend remains bullish, but a correction has started, which could extend as long as prices stay below the last selling zone.

The price corrects below 2200 after reaching a historic high on Friday at 2195.14, leaving a selling zone after the weekly opening around 2177, where the price is expected to return in search of liquidity, and where it is expected that bears will reactivate to extend sales towards the level 2142.42 and the next buying zone at the uncovered POC* 2125.74.

This bearish scenario will be invalidated if prices decisively break the selling zone above 2180, demonstrating the renewed strength of the bulls to seek a new historic high above 2195.14.

The RSI indicator maintains its position in positive territory after bouncing from the midpoint, so the ascent accompanied by decreasing vertical volume and subsequent break of the midpoint with higher volume will be favourable signals supporting the current short-term bearish idea.

*Uncovered POC: POC = Point of Control: It is the level or zone where the highest volume concentration occurred. If there was a bearish movement from it previously, it is considered a selling zone and forms a resistance zone. On the other hand, if there was a bullish impulse previously, it is considered a buying zone, usually located at lows, thus forming support zones.

**Consider this risk management suggestion

**It is very important that risk management is based on capital and traded volume. Therefore, a maximum risk of 1% of the capital is recommended. It is suggested to use risk management indicators such as Easy Order.

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