Gold looks ready for some upside - but don't rush in

FX:XAUUSD   Gold Spot / U.S. Dollar
Gold looks like a very good long at the moment.

Gold has broken above the recent downwards trendline and looks about ready to retest the trendline as support.

There's good confluence of...
  • Confluence of 200 EMA
    Bounce off of 1st trendline support (purple line)
    Bounce of Fib 61.8% level

However, my spider senses are warning me that it might be a wee bit too premature to enter...

While an entry now is tempting, I notice that the "true" weekly rising trendline support (red dash) has not yet been tested. This line should be drawn by strictly touching all lows in the trend - not the lows of the candle bodies. I've rushed in on Gold before only to get burned by not following this rule.

While its tempting to enter now, I'm going to wait a few days for price to retest 1263 before going long.

If you choose to enter now, make sure that your SL is wide enough to cover a test of the lower trendline - it's a very real possibility.

Good luck!
Gold is about to lift off and will left all these skeptics, who wait for another drop till years end, left behind.
Thanks for your comments guys.
+2 Reply
Good analysis. Keep in mind that gold is heavily influenced by the AUDUSD. At the moment it's difficult to find a good bullish argument for the AUDUSD.
I think we are looking at 2018 before going long
Do not rush in is an understatement
Yesterday rally was to take advantage from Saudies, today it shall be from Trump's visit to S.Korea but fundamentally it shall drop to below in 1200 by end of this year. Good luck with your long !
+1 Reply
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