As we can see we have a nice descending channel with gold price moving down in a pattern from 1322.40 down to the current price. We had some nice movement upwards over the last few days towards the upper line of the channel however today price seems to have struggled to progress any further up with a little push down. I still think we should see price move up to the targeted 1293.65 area. We have set this area as our specific target price zone as it is where the channel resistance meets the 61.8% fibonacci level as this fib level in particular as when we look back time and time again gold shows a strong correlation with the 61.8 level making it a strong target for any gold setup. I will post an updated idea with a set TP and SL level if I do end up entering the trade and it shows a good opportunity for a high risk to reward ratio.
Comment:
Trade never reached out ideal entry. Price moved very erratically and finally met the descending trendline at 1290.1 and made a 50% retracement before plunging lower. Good trade but I shouldn't have stopped paying attention :(