Gold XAUUSD Daily - Buy Zone in Pullback in 9 Week Uptrend

FX:XAUUSD   Gold Spot / U.S. Dollar
1403 15 19
Time at Mode Methodology looked for a rally to the 1290 level last month, which it reached. Once the rally completed its target, I was able to see that the mode was really 9-weeks and it allowed for the market to have rallied to 1300+, which you can see here.

Since there are 4-weeks left in the uptrend and this current decline looks to be just a correction within the uptrend, I think it makes sense to re-enter long here at 1234 and look for 1300 again in the next 4 weeks.

Risk is approximately $20-$40. Upside is $60-$80. You decide how much to risk. I'll say Risk $40 to make $60, but that is being conservative.

Reason for correction? Market isn't rallying Central Bank Money Creation. US Growth, jobs, earnings , etc, have come in a bit better than expectations which is notching up strength in interest rate forecasts going further into the future. However, I think this is just a correction from SEVERELY overbought. Silver             , by contrast, hadn't reached its target, and I'll make another chart about silver             next.


1:58PM Friday, February 6, 2015
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I thought I would like to share my bullish count which exactly matching your strategy

+1 Reply
jangseohee VRShaiju
different time zone, different view, same immediate support seen, well done
you can insert your chart on right hand corner of reply
Just my take... Trend lines were meant to be broken (which is why I'm often wrong) :)
smitheric1970 smitheric1970
jangseohee smitheric1970
yes trendline will break as well as channel, i believe you are using linear scale
i am seeing a triangle being photocopied here ..
claydoctor jangseohee
Tim, what do you think of these descending triangles Jang posted? Could we see a break out below the bottom TL, or up?
+1 Reply
jangseohee claydoctor
Hi Tim, i don mean to spam your posting :-)
Claydoctor: for immediate effect, i am 85% sure that price is going for the neckline :-)
if the neckline fails (false break down) we could see 1199-1200 area, thats when Gold is oversold
While I completely agree with the two duplicate patterns, we have other fundamentals pointing to a long bull run over the next 4 years.
Although yes, we could potentially see that 1190 level first, as Tim pointed out, this is a great long term time to buy in, just set your stop. Technically, if you go back to 2005, we have a nice bullish flag/pennant pattern in the works. The USD is putting a lot of pressure on Gold but Tm mentions the bubble bond and who knows how much longer equities will remain attractive.
+1 Reply
jangseohee smitheric1970
Hi Smitheric1970, unless the entire few months of break down is a false signal..
i don feel good going long for long term
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