Need for more correction

FX:XAUUSD   Gold Spot / U.S. Dollar
After twice failures to pass through 1257,50 it became a resistance here in short term view.

Because of the failed recoil under 1250 friday afternoon it construced some kind of short term uptrend with one of last weeks lowest values at 1241.

The need of technical correction supports the idea for more upside movement.

Long @ 1258
SL: 1252
TP: 1269


Hello again sir, it seems that the current price has succeeded in breaking through @1257.00 resistance. What do you think? can this be considered as a breakthrough signal?
If we look at the longterm downtrend then the value of 1260 is very dangerous because there is still the borderline between 1258 and 1260. There might be a pullback under 1258 and then a sequel to 1250 and maybe more.

Therefore I would not incline in one direction now. There is the neutral zone between 1258 and 1265 where everything can happen.

So more long signal after 1265 and more short signal after 1258.
This is my current idea, by looking at a higher TF, for me @1260 ~ 1262 is one of the major support/resistance that has been tested multiple times previously. Hence, I assume that @1260 will be the new resistance while @1257 will be the new support for this current trend (H1).

Does it sound reasonable?
Looks nice, my current idea which I was making right now ^^ also include the increasing low points and the connection between them. But there is some longterm downtrend which is making lots of pressure and forming a longterm triangle. You can see that in 5 minutes when i release my new idea.

But I would not call 1260 a real resistance it is more like a crucial point with upwards and downward tolerance. In this case between 1258 and 1265. Therefore 1258 is the support and 1265 (you can see that on daily chart) as the next key resistance.
I see.. looking forward for your new idea. Thank you so much sir. :)
+1 Reply
You are welcome :)
I opened a short @1253 since 06/06 but my scenario isn't realized. Like you I think that a new correction can come before falling again.
Reply MasterKey
I support your idea. Because a fall without a upside correction is also possible. Beyond doubt
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