Gold remains undecised. What could be next?
Yesterday,
XAUUSD
was relatively quiet, fluctuating within the familiar range of 2020-2030. At the time of writing, the price is hovering near a support level, prompting my earlier decision to close my buy trade with minimal losses.
However, the crucial question remains: What should we expect next from the price of Gold?
In the short term, a glance at the hourly chart reveals that Gold is currently trading near a confluence of support levels - the rising trend line from the recent low and a horizontal level. A breach here would expose the technical and liquidity zone between 2010-1015, followed by 2000 and the recent 1985 low, with numerous supports in between. Given the abundance of support levels, I am refraining from opening short trades at this time.
In the medium term, this year's price action is contained within a downward channel. However, it's important to note that this channel is also encompassed within a larger ascending channel. While the long-term pattern provides us with directional guidance for the next few months, the possibility of a dive below 2000 remains, potentially triggering stop losses along the way.
In conclusion, I have decided to adopt a wait-and-see approach for now, hopeful that the weekly close will shed more light on the situation.
XAUUSD
was relatively quiet, fluctuating within the familiar range of 2020-2030. At the time of writing, the price is hovering near a support level, prompting my earlier decision to close my buy trade with minimal losses. However, the crucial question remains: What should we expect next from the price of Gold?
In the short term, a glance at the hourly chart reveals that Gold is currently trading near a confluence of support levels - the rising trend line from the recent low and a horizontal level. A breach here would expose the technical and liquidity zone between 2010-1015, followed by 2000 and the recent 1985 low, with numerous supports in between. Given the abundance of support levels, I am refraining from opening short trades at this time.
In the medium term, this year's price action is contained within a downward channel. However, it's important to note that this channel is also encompassed within a larger ascending channel. While the long-term pattern provides us with directional guidance for the next few months, the possibility of a dive below 2000 remains, potentially triggering stop losses along the way.
In conclusion, I have decided to adopt a wait-and-see approach for now, hopeful that the weekly close will shed more light on the situation.
Comment:
Gold is flying:)
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XauUsd has reversed from the classical 2015 zone, just above it in fact, and is currently trading above the recent corrective flag.
More importantly, the weekly chart reveals a significant development.
Last week formed a long-tailed Pin Bar from just below 2k, close to support. If bulls manage to close the week near 2030 or above, this week's candle will also portray strong bullish sentiment.
Combining the two candles, we witness a remarkably strong reversal signal for the medium term, suggesting a bottom to support a longer-term bullish trend.