GOLD Waiting For A Daily Breakout

OANDA:XAUUSD   Gold Spot / U.S. Dollar

On the daily time-frame we can see a clear double top formation rejecting from 1731.77 resistance area . We can also note the the support structure that is formed at the 1682.55 area. (Rejections shown on the chart). Which means, that GOLD is currently consolidating between 1682.55 - 1731.77. We have been in this situation multiple times before on the channel. When the market is consolidating or moving sideways, the best thing to do is to WAIT for a breakout, from either the upside or the downside. We are personally favoring, a short bias. Meaning, we will wait for a daily candle to close below the support area . Afterwards, will be wait for a pullback to 1682.55 turning previous support into resistance. Once, we have those steps have been fulfilled, only then we have enough confirmation to enter sells. Ofcourse, if that doesn't happen we will be ready for the bullish breakout as well.

Our stop loss will be modified once the daily candle has broken support. Then we can look at lower time-frames to identify smaller resistance areas, to place our stop loss above them.



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