Gold - XAUUSD Long set up

After 4 weeks of decent rally Gold has been on a pullback for the past 2 weeks. I am going to try my luck with a Long trade.

Entry: within green rectangle
Target: red rectangle (or may be just below it to avoid front run)
Stop: white dotted line
R:R: 4.52

Reason for entry:
1. Higher low and Higher High on Weekly timeframe
2. Incoming rounded retest of weekly OB/support (green rectangle)
3. Invalidation point (white dotted line where higher low thesis gets invalidated) is very close to entry hence offering juicy R:R

Comment:

Gold is moving up as planned. I have moved my SL to my entry (1199.22) because if it comes back down that far that will mean it wants to reach lower breaking past the weekly OB (1st green rectangle).

As you can see in the chart below, it is currently finding resistance at H4 OB (red rectangle). An impulse move through this level will mean the continuation of the bullish thesis. I'll add more to my position if this happens (of course on a pullback towards the broken resistance level).

Comment:

Shot past through a D1 OB (1222 to 1226) and currently finding resistance at another D1 OB marked as red rectangle (1241 to 1247). This is a strong resistance zone and I think price will strall here for atleast a few days or even more. Locking in partial profit here for 30% position.

Couple of D1 close through this level will mean we are good to go higher. Immediate support is between 1222 to 1226 (green rectangle below the the current price level)

Comment:

Zooming in on D1 timeframe, Gold is making a bearish channel/bear flag. I am also seeing bearish RSI divergence (RSI made lower high whilst price higher high). Because all these are trouble signs which are showing up on D1 timeframe, I can’t ignore them. Hence I am cutting 75% of my remaining position before target here at current price of 1261.09 and letting the remaining 25% to ride with trail stop.