I have seen many charts that suggest the main downtrend for XAUUSD is broken which lead to Bullish outcomes. I use log-scale for long term charts and we can see clearly the falling channel is still intact.
The 2006 uptrend was broken and tested at about 1375. Price's since then kept failing to go back to the test area and that's just the nature of it when retrace is in place. That signals a downtrend continuation.
This area since the beginning of 2016 till now has most likely been forming an Inverted Cup and Handle pattern. It still needs to breakout to be confirmed but I thought I should include it for awareness. The pattern targets areas around 900 which makes sense to test the lower band of the falling channel.
Trade well. Cheers!
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Gold hit the upper band of the falling channel. This is a two-week chart so candles can be viewed clearly.
@MassimoCozzi, I'm using the first two highs. If you're trying to connect all the tops then you're cheating.
JamesRkaye
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Nice idea. I thought maybe it would be relevant to this that on a non log scale the trend line between 2006 low and 2016 high is the same angle as the lows of the past few years
Bandarsq
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@JamesRkaye, Great chart mate. I will be watching the bottom light blue trend to confirm the downtrend. Thanks for sharing.
Kevin_Sailly
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@Bandarsq, Haii Bandarsq.. I think your chart here is the next movement of GOLD. It's breakout the top trendline isnt it?
@Bandarsq, Thanks for your valuable insights. I see the move up is corrective and can take XAUUSD to 1450 levels. I come to this level based on the following :
Wave C = Wave A, which is in confluence as a confluence with a reverse Fibo of 1.38 of the last swing down.