XAUUSD: Shore term sell opportunity within the Channel Up.

Gold is trading inside a 4H Channel Up (RSI = 65.937, MACD = 6.370, ADX = 39.644, Highs/Lows = 8.2501) since the 1,535.50 bottom earlier this month. The pattern has reached the Higher High trend line today, which is also the 0.618 Fibonacci retracement level from the 1,611 top.

This rise was of course largely assisted by the global alarm regarding the coronavirus and the subsequent sharp selling on stocks, but from a technical standpoint the price should now pull back inside the Channel Up towards the Higher Low trend line. Since the 4h MA50 has been tested on the previous Higher Low run, we are expecting another test of the MA period near 1,564, which is also the 0.382 Fibonacci level.

*Note: See how the MACD is strating to make a bearish reversal.



P.S. This short term projection doesn't alter our long term bullish view on Gold. Our long term projections earlier this month are intact as you can see below:






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