Lately, Gold has made some impressive gains, last time we were so high in 2013.
It has broken above a multi-year , which consists of 2014/16/17/18 yearly highs, with a really powerful Weekly candle. After the break above the multi-year resistance, XAU/USD has climbed almost straight to the current levels. Why I post it, it's because of the current . It consists of multiple criteria which can stop the price and if we get a correct price action from the top then it can produce reversal.
Let's start from highest to lowest, the current resistance consists of:
1. Dark blue 200% (marked as -100)
2. Gold price has touched and it got a rejection from multiple 2011 and 2012 years wicks but the most important is - 1,526 has been 2012 low which now should act as a resistance.
3. Light blue 161,8% (marked as -61,8)
4. Red level 62%. It is pulled from 2012 high to 2015 low.
5. projection. This projected channel upper should start to act as a .
Those were the criteria from where the price has currentlyalready got a rejection or it is really close to getting it and now the most important criteria:
6. As said, the price has got a rejection from prementioned levels/criteria and possibly this rejection can end with a pattern called . Obviously, the gets confirmed after the current Weekly candle close. There is a slight difference between close in green and close in red. If it closes on the green, then this means that bulls are still alive, simply because the Weekly candle was green. Red close means that bulls are gone and bears slightly dominated the week. Now the most important criteria, if the price falls lower, then we have another rejection...
7. ...rejection from the round number 1,500.
This could be a perfect scenario for the next week/weeks. Perfect rejection from the strong price levels and the cherry on the pie is pattern Shooting Star!
Let's look inside the Weekly candles - , trade plan, where and when you can execute the trade the most accurate way.
The has printed an interesting pattern which occurred on 13. August. To name it, following the textbook, is hard but it looks like a , it looks like a . It is what it is but the most important things about it: it is red and it got a powerful rejection from higher levels. After it, a classical pullback and today's candle has started to form another pattern called .
Here comes the most accurate way to execute the trade: If you see, after the break above 1500, the round number has held it SIX days in the row. So, IF today's (Friday) candle gets a close below 1500 then we get another pattern from the Daily and Gold is technically ready to go downwards!
Do your own research and if this matching with mine then you are ready to go!