The price of Gold is poised for a potential decline during the U.S. trading session, currently positioned at the upper boundary of the Bollinger Bands, a popular technical indicator utilized for gauging volatility and identifying potential support or resistance levels. This situation, combined with the Stochastic indicator revealing an overbought condition, signals the possibility of a price correction.
Typically, when the price reaches the upper limit of the Bollinger Bands, there tends to be a movement back toward the center. The Stochastic in the overbought zone suggests that the bullish momentum might be waning, creating an opportunity for a sell-off in the near future.
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On the 15-minute chart, Gold exhibits bearish signals as the price has failed to surpass the upper threshold of the Bollinger Bands, indicating that selling opportunities may still be present. Furthermore, a sharp decline in the CCI from the oversold area reinforces the potential for selling. If this scenario unfolds as anticipated, the price of Gold could trend toward a support level at 2,636.00.
Technical Reference: sell while below 2,636.00
Potential Stop Loss 1: 2,633.00
Potential Stop Loss 2: 2,636.00
Potential Take Profit 1: 2,620.00
Potential Take Profit 2: 2,617.00
