XAUUSD: There is nothing to stop it from reaching 2,800

Gold is overbought on all long term timeframes, 1D (RSI = 79.774, MACD = 65.910, ADX = 64.635), 1W (RSI = 78.920, MACD = 78.590, ADX = 45.450) even on the 1M technical outlook (RSI = 72.546, MACD = 91.920, ADX = 43.804). This doesn't mean that a technical correction is bound to come soon but on the contrary that this is a very strong cyclical trend that is more likely to continue.

The prevailing pattern is a Channel Up that started on the August 2018 bottom. Currently the price has crossed over the Channel's middle and proportionally we are on a similar situation as February 2020. Ignoring March's COVID crash, Gold extended its rise after a consolidation above the Channel's middle and then peaked at +77.21% from the bottom. Consequently we expect an aggressive rise on this second half of the Channel and we are targeting near its top, close to +77.21% (TP = 2,800).

See how our prior idea has worked out:


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