XAUUSD SHORT term major resistance rejection expectedXAUUSD SHORT term major resistance rejection expected, wait a daily reversal.
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Gold - Consolidation since early July about to endGold has been consolidating over the last two and a half months. It did everything to confuse everybody.
But besides all this short-term noise there has been a very important and extremely bullish development.
The Slow Stochastic Oscillator is sitting with both signal-lines above 80 for more than 3 months now and has therefore converted into the rare embedded status. This is super bullish and means the uptrend is locked in...
I think the final bottom is due until next Wednesday between $1,300 and 1,310.
From there Gold will shoot towards $1,415-$1,430 pretty fast....BUY THE DIP
GOLD - One More Leg Down ?After touching support at 1330, gold turned up $27 and traded as high as 1357 . However, sellers came in and pushed it back to the 1345 level. What's next ?
It seems like gold is still in a correction phase with possibly one more leg down. You can see in the chart gold is trying to climb back to the red trend line and hold above there.
The last wave up from 1330 to 1357 can be drawn within a very upward sloping channel. Price is at the intersection of the green support channel line and the red trend line. If price breaks down, it will be a heavy drop. So Watch The Price Action There !
Please note that MACD indicator is having a cross over. Therefore, downtrend is continued being favored here.
I have a projection of the move if price does break down those trend lines. By using AB = CD pattern, price can move lower to 1320 level.
GOLD - HEAD & SHOULDERS PATTERNGold has formed a head and shoulders pattern on the daily chart. Now gold is testing the neckline support after forming a right shoulder at 1366. The neckline support should be around 1332-1337. If it breaks down from the neckline, head & shoulders pattern may kick in and gold will drop as low as 1240. Other supports are 1300-1305, 1280-1285, 1260-1265.
Trade plan:
- Sell Stop at 1330 or Sell on Daily Close if today price closes under 1332.
- Take profit at 1250
- Stop loss at 1370.
Might consider taking partial profit at supports such as 1290, 1270.
Stay Tuned !
