Is possible that Gold will find resistance on old ATH (all time high) and resistance of channel 2 around $1900
Upon a rejection from this resistance a short position might be profitable untill $1500( conservatively)
SInce Gold is a horrible hedge against market gyrations and possible sell offs, Gold falling beyond the ( if it comes down ) could indicate a further decline in equities.
As long as the 50MA holds on the monthly chart , we could esipulate a possible formation on the monthly chart with resistance of channel 2 acting as the handle( that's a chart for another day )
Although we still believe that GOLD has around 8% upside a trade here doesn't justify the risk.
So for now we will wait untill $1900 is rejected and tested ( at least on the weekly chart) before we start shorting it.
On our chart we have $1500 as a target area for around 2022..but with elevated $1500 could come in much sooner than expected( if it does at all)
Our main objective is to short Gold to $1500 but stay rather conservative and only take short trades from resistance of channel 2 to limit any potential downside on our trade.
So, as the days passes the resistance of channels will change to the downside and a trader must adjust accordingly, be aware and flexible on his approach.
Although these numbers may or may not come to fruition , please keep in mind these are perceived based on our strategy and may differ from other traders.
Have fun and trade with care.