Technical Analysis of Gold (XAU/USD) Across Multiple Timeframes – August 18

Problem Statement:
Based on the current price of XAU/USD at 3371.97 and the observed charts across 5-minute, 15-minute, 4-hour, and daily timeframes, we aim to identify trading opportunities for August 18. The analysis includes breakout levels, support/resistance zones, and momentum indicators such as RSI and MACD.

Short-Term Analysis (5-Minute and 15-Minute Charts)

Gold experienced a sharp price spike around 09:00, likely due to economic news or data releases. The price is consolidating near the 3371.97 level. If the price stabilizes above the breakout zone, a continuation toward 3380 is expected. Otherwise, a pullback to 3355–3360 may occur.
Suggested Strategy: Buy on pullback to 3360 with target 3380 and stop-loss below 3350.

Mid-Term Analysis (4-Hour Chart)

The 4-hour chart shows a clear uptrend with higher lows and resistance breakouts. If the price closes above 3375, the next targets are 3395 and 3410.
Suggested Strategy: Buy after confirmation above 3375 with target 3395 and stop-loss below 3360.

Long-Term Analysis (Daily Chart)

Gold is approaching historical highs within a rising channel. A strong bullish daily candle above 3375 could signal a breakout toward 3410 and 3450. However, RSI and MACD may indicate overbought conditions, suggesting caution.
Suggested Strategy: If price fails to hold above 3375, expect a correction toward 3330–3340. Otherwise, aim for 3410 and 3450.

Trading Summary Table

Trade Type	Entry Point	Target	Stop-Loss
Short-Term Buy	3360	3380	3350
Mid-Term Buy	3375	3395	3360
Correction Sell	Below 3370	3340	3380

Python Code Example for MACD and RSI Calculation

You can use the following Python code to calculate MACD and RSI for XAU/USD using historical price data:

import pandas as pd
import ta

# Load your price data into a DataFrame (df)
df['MACD'] = ta.trend.macd_diff(df['Close'])
df['RSI'] = ta.momentum.rsi(df['Close'])

# Signal logic
df['Buy_Signal'] = (df['MACD'] > 0) & (df['RSI'] < 70)
df['Sell_Signal'] = (df['MACD'] < 0) & (df['RSI'] > 30)

Use these signals to validate your entry and exit points based on technical indicators.

Conclusion

Gold remains bullish across multiple timeframes, but traders should watch for overbought signals and potential corrections. Combining price action with indicators like MACD and RSI can improve decision-making and risk management.