Over the last 7 weeks we have seen Gold 0.39% rally 1300 + pips to take out 4 month highs. Last week we saw the pair run into major weekly resistance at 1365 only to stall during the last 2 days of the trading week which included a significant daily rejection on Thursday's candle close. Price is currently stalling at minor support at 1345 which could easily be a possible bottom for the pair to continue on to make new highs past 1365 due to the weakness in the dollar. However, due to price being at significant resistance, I will not be looking to long the pair again unless I see a pull back below 1340. In the event that the price does come back below 1340, I will be looking closely for long opportunities anywhere in between 1330 & 1340, with stops being below the last reference daily low at 1324. Overall, I am bullish on the pair to above 1365 and eventually multi-year highs above 1400 but am awaiting further pullback before going long.
Comment:
Price has now dipped under 1340 as I had expected. I am waiting further downside push to go long in between the levels of 1330 & 1335. Will be posting a new gold trade set up shortly.