dcm2020

GOLD looks like it is ready for the next pop

Long
FX:XAUUSD   Gold Spot / U.S. Dollar
Hi,

Few weeks ago GOLD broke a massive trend line on the Weekly chart. The brake above 1360 was key for GOLD to change to Bullish from range which was held for few years.
Now GOLD is at 1421 area and is inside of a very clean triangle on the Daily chart . As we know, triangles is a period which the markets use to consolidate for the next move from the previous trend which in this case is higher.
Also note that on the Daily chart , the RSI is getting close to the 50 level which suggest that the possible consolidation is getting close to finish. Also, the size of this consolidation has been very surprise which it couldn't even rich the 38.2% fib which is expected for a 'healthy pullback'. When the 38.2 is not reached it shows that this market still very very heavy with the current trend.

Trading strategy: I bought OANDA:XAUUSD at 1420, with SL at 1399 with the first target at 1480 (2.66 RR) and second target at 1560 (6.2 RR).

Good luck to us.

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