XAUUSD Potential Long Play
Updated
Gold is shaping up very nicely for a potential long trade. Using multi-timeframe analysis we can clearly see that:
1. Price has been in a bearish trend for quite some time and this run is now overextended and in need of a pullback
2. Price has formed a very clean descending channel against the weekly trend
3. We are now approaching a key support area at the 16800 area, with horizontal support as well as a potential 3d touch/rejection from a descending TL
4. Intraday there is a very clean descending wedge forming and to top it up there is clean MACD divergence at the moment
With all this being said, the potential to the upside is massive in my opinion but we still need a bit more development. I personally will be waiting for a clear 1H rejection from the support area in order to take this long.
Note
Price has evolved into a descending channel structure but the 1680 area is likely to still provide good support, so I am still waiting for the right long setup to develop.
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