Gold has broken out of its resistance trend line (yellow doted line) which will soon be tested as new support. On H4 TF there is bearish momentum on StochRSI and wave trend oscillator which will bring the price down again to the yellow doted line. Bullish momentum on 1D TF has built up (see StochRSI, and bullish crosses on wave trend oscillator and MACD) which should be strong enough to bring Gold to new highs soon in the short-term (yellow arrow). Note that we are near the distribution zone which is between €1300 - 1387!
Day traders can wait for bullish momentum on H1 & H4 TF and set their entry near the yellow line for a long. Swing traders which should have already bought gold can set their TP1 slightly below the distribution zone (~ €1295), and TP2 inside the distribution zone.
In a few week short opportunities will arise on higher time frames (1D, 1W chart). Sentiment is also already approaching risky levels for gold investors.
However, looong-term I´m very bullish due to the 50/100 MA golden cross on the 1M chart which will come in Sep 2019!
I´m not a financial advisor. For educational purpose only!
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1D candle-stick chart analysis: - Stochastics RSI: loosing bullish momentum - RSI: overbought @71 (in 2012 we reached 69 at ATH) - MFI: overbought @52 (in 2011 we reached 86 at ATH) - WT_LB: overbought @66 (in 2011 we reached 76 at ATH and then the price plunged!) - bearish div on volume! - MACD divergence!
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On August 26th gold broke it´s ATH on the EUR chart! I have not expected that we break the ATH soo quickly with one massive parabolic move without any significant pullbacks. I think the reason for this are macroeconomic conditions like trade and currency wars.
However, on the USD-chart gold is approaching Fib resistance level .618 which is at $1587. I don´t think that we have enough momentum left to break through $1587 (~ €1444) on the USD-chart without a significant pullback. A healty correction should come soon which could be a good short opportunity ;-)
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Last week closed with a shooting star candle on the weekly TF! Pullback is confirmed as soon as the support around $1489 / €1348 breaks. When this support breaks a I´ll open leveraged short position!
Due to the weak Euro and strong gold demand we hit ATH on EUR chart! Now it´s a good time to sell more gold bullions /coins ;-)
Keep in mind that on the Gold/USD chart we are still far away from ATH ($1921).
However, XAU/USD is currently fighting with the resistance zone between $1555 – 1587.-
If gold can break trough this resistance zone, gold could make a new ATH on the EUR chart, but I think we would need a healthy pullback first.
A correction is overdue!
Keep in mind that on the Gold/USD chart we are still far away from ATH ($1921).
However, XAU/USD is currently fighting with the resistance zone between $1555 – 1587.-
If gold can break trough this resistance zone, gold could make a new ATH on the EUR chart, but I think we would need a healthy pullback first.
A correction is overdue!