on the 4-hour chart.
Consolidation and daily close above 1850 would indicate the bullish trend. Otherwise, there could be a technical correction for the next few days.
The fall in Treasury yields had boosted metals. But the 10-year bond yield is now recovering. It has rebounded after touching 1.60% and is at 1.63%, which could add pressure to Gold, and there could be a drop below 1850.
The technical reading of the eagle indicator shows that XAU/USD is reaching extreme overbought levels, and a bearish movement is likely in the next few hours as part of the technical correction.
Our recommendation is to sell below 1850, with targets at 1843 and 1825. In case of consolidation below 1843, the drop may be clearer.
Support and Resistance Levels for May 17 - 18, 2021
Resistance (3) 1869
Resistance (2) 1862
Resistance (1) 1856
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Support (1) 1849
Support (2) 1836
Support (3) 1832
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Trading tip for GOLD for May 17-18, 2021
Buy above 1.851 (SMA 21), with a Take Profit at 1860 and a Stop Loss bellow 1848.
Sell below 1848 (SMA 21) with a Take Profit at 1843 (7/8) and 1832, and a Stop Loss above 1852.
