On the daily chart, XAUUSD (Gold) is approaching its all-time high resistance level around $2,476. This level has proven to be a significant barrier, as indicated by the multiple rejections from this zone in the past. However, the price has consistently made higher lows, forming an ascending triangle pattern, which is generally considered a bullish continuation pattern.
The key idea here is to watch for a breakout above the all-time high resistance. A decisive close above this level, ideally supported by increased trading volume, could signal the start of a new bullish phase, potentially leading to a strong upward movement.
Traders might consider setting up a buy order just above the resistance level around $2,480. The target for this trade could be set near $2,550, which would be the next psychological resistance. A stop loss should be placed below the most recent swing low or below the ascending trendline, around $2,440, to manage risk effectively.
However, if the price fails to break above the resistance and instead reverses, it might continue to consolidate within the triangle. In this case, aggressive traders could look for short-term trading opportunities within the range, while more conservative traders may wait for a clearer breakout signal.
The key idea here is to watch for a breakout above the all-time high resistance. A decisive close above this level, ideally supported by increased trading volume, could signal the start of a new bullish phase, potentially leading to a strong upward movement.
Traders might consider setting up a buy order just above the resistance level around $2,480. The target for this trade could be set near $2,550, which would be the next psychological resistance. A stop loss should be placed below the most recent swing low or below the ascending trendline, around $2,440, to manage risk effectively.
However, if the price fails to break above the resistance and instead reverses, it might continue to consolidate within the triangle. In this case, aggressive traders could look for short-term trading opportunities within the range, while more conservative traders may wait for a clearer breakout signal.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.