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Long

XAUUSD Weekly Analysis March 6-10

FX:XAUUSD   Gold Spot / U.S. Dollar
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Higher time frame (W1) shows that Gold is still on a down trend where It has formed higher high followed by higher low 3 times and it is about to retest the major down trend line for the fourth time.

Looking at the short term time frame (D1), Price is making higher high however RSI has hit a resistance level at 70 for 3 times. This suggests that price may still have room to go up but is losing its momentum.

Also a potential head and shoulder pattern is forming. If the price reach 1290 and could not break above 1300, we may see the price to go below 1200 and potentially 1131. On the other end,

However, a break above 1300 invalidates our head and shoulder analysis, as it also breaks the major down trend line it suggests a momentum reversal.

A short term trade favors a potential bullish 400 pips run with a 245 pips risk (1.6:1 RRR )
Buy stop @ 1250.0
SL @ 1224.5
TP @ 1290.0

But if the price continues to go down, a potential 314 pips with 149 pips risk trading opportunity awaits (2.1:1 RRR ).
Sell stop @ 1221.4
SL @
TP @ 1190.0

A higher probability trade would be a break either above or below the triangle.
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