FX.co - Analysis of Gold for May 06,.2022 - Watch for potential breakout of channel

6 May 2022 at 4:59PM (UTC+0)

Relevance until7 May 2022 at 4:59PM (UTC+0)

Technical analysis:

Analysis of Gold for May 06,.2022 - Watch for potential breakout of channel

Gold has been trading sideways at the price of $1.887 and I see potential for the downside breakout.

Trading recommendation:

Due to the potential bear flag in the background and downside trend, I see potential for further downside movement.

Watch for potential selling opportunities in case of the downside breakout of channel at $1.865.

Downside objectives are set at $1.850 and $1.821.

MACD oscillator is showing negative reading, which is sign for further downside movement.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade

Analytical expert

Petar Jacimovic

FX.co ★ Analysis of Gold for May 06,.2022 - Watch for potential breakout of channel