In the American pre-market on Friday, gold (XAU / USD) is trading below the SMA of 21 in 4-hour charts, with a slight bearish bias, and an immediate support in the zone of Murray 8/8 around 1,875.
Gold has remained below the psychological level of $ 1,900, and little by little it was forming a sloping sequence of bearish candles. All in all, 21 moving average are exerting pressure. Gold is likely to make a downward movement to the zone of 1,880 and 1,875. This last support could give Gold a good technical bounce.
Rising inflation expectations account for the attractiveness of gold as a hedge against it. It is likely that any correction movement in XAU / USD will be an opportunity to buy gold again at lower price levels.
As long as Gold is trading below the SMA of 21, there is a probability that there will be a bearish sequence. On the contrary, a break above 1,895, zone of the SMA of 21, there could be a new bullish momentum to challenge the psychological level of 1,900.
The technical reading of the eagle indicator is showing oversold levels. That is why we must be careful, and wait for the support of 1,875 to look for opportunities to buy with targets at 1,895 and 1,910 in the short term.
Support and Resistance Levels for May 28 - 31, 2021
Resistance (3) 1,911
Resistance (2) 1,903
Resistance (1) 1,900
----------------------------
Support (1) 1,888
Support (2) 1,880
Support (3) 1,872
***********************************************************
Trading tip for XAU/USD (gold) for May 28 - 31, 2021
Sell below 1,895 (SMA 21), with take profit at 1,880 and 1,875 (8/8), stop loss above 1,900.
Buy if rebound 1,875 (8/8 of murray) with take profit at 1,895 (SMA 21), and 1,910 stop loss below 1,870.
