Back to the basics for XAUUSD Consolidation
Good day traders,
XAUUSD / #Gold has been consolidating for the last 24 months, I don't expect this to change until the USA admits that they are under a recession and I beelive this will only happen in 2025 when they officially go to war with the world's new super power China. We've seen something similar play out in 2002 when America saw that they were going into recession, they went to war to steal from another country in the guise of "Peace". In my opinion the XAUUSD will short sharply before it reaches the $3000 mark per ounce.
In my analysis, we have a simple support and resistance analysis that I believe it will respect. Please share your thoughts.
Disclaimer
NASDAQ Guru offers general trading signals that does not take into consideration your own trading experiences, personal objectives and goals, financial means, or risk tolerance.
XAUUSD / #Gold has been consolidating for the last 24 months, I don't expect this to change until the USA admits that they are under a recession and I beelive this will only happen in 2025 when they officially go to war with the world's new super power China. We've seen something similar play out in 2002 when America saw that they were going into recession, they went to war to steal from another country in the guise of "Peace". In my opinion the XAUUSD will short sharply before it reaches the $3000 mark per ounce.
In my analysis, we have a simple support and resistance analysis that I believe it will respect. Please share your thoughts.
Disclaimer
NASDAQ Guru offers general trading signals that does not take into consideration your own trading experiences, personal objectives and goals, financial means, or risk tolerance.
Comment:
We're holding..
Comment:
Time period: Daily chart from 2020 to present
Trend: XAUUSD has been rangebound between $1600-1800 for the past 2 years, with no clear short-term trend.
Resistance: Key resistance at $1800, the top of the long-term trading range.
Support: Strong support at $1600, the bottom of the 2-year range. Additional support at $1650.
Moving Averages: Price consolidating in a sideways moving average sandwich, with the 100-day MA providing short-term support.
Recent Action: XAUUSD bounced up from $1650 support in August but has seen selling pressure at $1800 resistance in September.
Recommendation: With price currently near the middle of the wide trading range, I am neutral on direction. However, I would look to enter a short position on a daily close below $1650 support.
Entry: Short on close below $1650
Stop Loss: Place above the 20-day MA at $1710 to limit risk
Take Profit 1: $1600 major support
Take Profit 2: Extended move towards $1550 if $1600 breaks
The technical factors support a potential resumption of the short-term downtrend if $1650 support is lost. Shorting thereafter allows risk-managed exposure to downside without bias if the range is maintained.
Trend: XAUUSD has been rangebound between $1600-1800 for the past 2 years, with no clear short-term trend.
Resistance: Key resistance at $1800, the top of the long-term trading range.
Support: Strong support at $1600, the bottom of the 2-year range. Additional support at $1650.
Moving Averages: Price consolidating in a sideways moving average sandwich, with the 100-day MA providing short-term support.
Recent Action: XAUUSD bounced up from $1650 support in August but has seen selling pressure at $1800 resistance in September.
Recommendation: With price currently near the middle of the wide trading range, I am neutral on direction. However, I would look to enter a short position on a daily close below $1650 support.
Entry: Short on close below $1650
Stop Loss: Place above the 20-day MA at $1710 to limit risk
Take Profit 1: $1600 major support
Take Profit 2: Extended move towards $1550 if $1600 breaks
The technical factors support a potential resumption of the short-term downtrend if $1650 support is lost. Shorting thereafter allows risk-managed exposure to downside without bias if the range is maintained.
Trade closed manually:
Take the profit. If the opportunity presents itself again, we will commit to the swing.
