XAUUSD - Top Down Analysis

There are lots of reasons to be bullish Gold and in today's top down analysis, I'll give you my full technical outlook and when I think is the best time to enter and potentially exit this trade.

Let's start by taking a look at the 4hr chart above. The first thing I notice is that Stochastics is in the overbought territory which makes me hesitant about buying right away. Ideally I'd like to wait for Stochastics to be oversold to enter any long positions.

With my guess, if Gold does decide to pullback and Stochastics drops from the overbought territory, I suspect the 200 SMA could very well act as a short-term pivot point.

Let's now take a look at the daily.

== DAILY ==

With the daily chart, the first thing I notice is the 3 white soilders present on the screen which is a continuation confirmation. This comes following a bullish breakout to the upside with a pullback to support which was previous resistance. Furthermore, Stochastics on the daily timeframe is in the oversold territory which for me adds an additional layer of conviction.

Lastly, the weekly.

== WEEKLY ==

Taking a look here, we can see price action is currently well supported by the strong support zone going all the way back to early 2021.

== IN SUMMARY ==

ENTER: Wait for 4hr pullback towards 200 SMA (Around 1750)
EXIT: Target 200 SMA on daily timeframe (Around 1835)