FX.co ★ XAU/USD, GOLD

XAUUSDHello traders! M15 chart. The linear regression channel is descending, indicating seller strength. The advantage is with the southern direction, heading towards the lower channel edge at 4215.30. I am considering selling from the level of 4330.87, which must hold against the bulls, otherwise the chance of changing direction to a deeper correction towards the level of 4442.77 sharply increases. Upon reaching the target, it is worth waiting with sales, as they become unprofitable, since the volatility of the movement on M15 exhausts itself, leading to a reversal upwards. In this case, one can get stuck at the bottom, in losses. It is more correct to wait for a pullback to the upper channel boundary and enter the market from there, which will significantly reduce costs in case the signal from the channel is not confirmed.

Moving to the higher timeframe H1, where the linear regression channel determines the main movement of the asset in daily trading. The M15 channel is refining, correcting, complementing. The market is trading at the level of 4314.56 below the upper edge of the H1 channel, as well as below M15. I assess this situation as bearish. The combination of the two channels indicates the prospect of selling rather than buying, which in this situation looks risky. It's like playing with knives, where one can get hurt and incur losses. If the bulls manage to hold above the level of 4330.87, it will be possible to consider or add to sales from the upper part of the H1 channel at the level of 4442.77. The second bearish target in the current trading session is 4288.97.