XAUUSD could potentially break out of its descending resistance!

XAUUSD is being squeezed by its descending resistance line and its major support at 1306 (L T 100% Fibonacci extension, L T 50% Fibonacci retracement, 61.8% Fibonacci extension, multiple horizontal swing low) If price breaks out of its descending line, we could see it rise to its 1st resistance at 1330 (61.8% Fibonacci extension, horizontal swing high resistance) and possibly to its 2nd resistance at 1339 (61.8% Fibonacci retracement, horizontal swing high resistance).

Stochastic (89, 5, 3) shows a lot of corresponding upside potential. A bullish divergence and ascending line has also been identified, indicating the possibility of a bullish breakout.

Trade closed: target reached:

yay! XAUUSD broke out of its descending resistance and reached the 1st resistance!