FX.co ★ Trading signal for GOLD (XAU/USD) for August 11-14, 2023: buy in case of rebound $1,913 (4/8 Murray - head-shoulders)

Early in the American session, Gold (XAU/USD) is trading around 1,919.07 above the 21 SMA within a downtrend channel formed since August 7.

On the 1-hour chart, we can see the formation of a technical reversal pattern called head&shoulders. If the price falls towards 1,913 in the next few hours and rebounds from that level, it will confirm the buy signal. Then, we could expect a bullish move towards 1,921 (top of the downtrend channel).

In case gold breaks this downtrend channel and consolidates above 1,924, we could expect a rally towards the 200 EMA located at 1,932 and it could even reach the 1,937 level (6/8 Murray).

In case gold rebounds at about 1,913, it could offer a good buying opportunity because it is oversold according to technical indicators.

Our trading plan for the next few days is to wait for a recovery so that it could reach 1,942, the high of August 6.

On the other hand, below 1,910, we could expect a bearish acceleration towards the psychological level of 1,903 which could indicate a break from the bearish pressure and a change in trend in the medium term.

Since August 9, the Eagle indicator has been giving a positive signal. So, a technical correction is likely to follow in the next few hours which could be used as an opportunity to buy.