LONG GOLD - New Target @ 2010
Updated
Hello fellow traders, today I want to show you my analysis of XAU/USD .
Currently we can see a disorted W-formation that broke through the resistance area around 1955 which has been tested around 5 times since Aug 20th. Because of this and the fact price also broke through the existing bearish trend line , this can be considered a key level for further gold price movements. This former resistance should now act as a strong support. Now we have to wait for the extended W-formation to finish, e.g. a pullback to the new support level . After confirmation of the new support, we can enter long with a tight SL just under the support area and a TP around the new resistance at around 2010. RR for this setup would be around 3.8+.
Bears tested 200D SMA several times during the last month, almost always being rejected harshly - this establishes the 200D SMA as a strong support. The recent two breakouts below the SMA were necessary for the formation of the W-formation and should actually increase upwards momentum via a slingshot effect. 20D SMA barely touched its bigger brother and got rejected as well, resulting in a trend reversal in the 20D SMA .
This might trigger as early as Monday. Good luck!
Any ideas, critizism etc. are more than welcome. :)
Currently we can see a disorted W-formation that broke through the resistance area around 1955 which has been tested around 5 times since Aug 20th. Because of this and the fact price also broke through the existing bearish trend line , this can be considered a key level for further gold price movements. This former resistance should now act as a strong support. Now we have to wait for the extended W-formation to finish, e.g. a pullback to the new support level . After confirmation of the new support, we can enter long with a tight SL just under the support area and a TP around the new resistance at around 2010. RR for this setup would be around 3.8+.
Bears tested 200D SMA several times during the last month, almost always being rejected harshly - this establishes the 200D SMA as a strong support. The recent two breakouts below the SMA were necessary for the formation of the W-formation and should actually increase upwards momentum via a slingshot effect. 20D SMA barely touched its bigger brother and got rejected as well, resulting in a trend reversal in the 20D SMA .
This might trigger as early as Monday. Good luck!
Any ideas, critizism etc. are more than welcome. :)
Trade active
XAU/USD showed expected pullback. Entered trade at 1962.5.
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