XAUUSD Bullish & Bearish Signals

After a good rise, price approached to the resistance level at 1760 and dropped.
There are two trend lines here:
1. The descending trend line which has been broken to the upside and price started to grow after that breakout.
2. The ascending trend line to which price is approaching right now. On the other hand, since price has made a reversal head & shoulders pattern we can consider it as a neckline either.

MACD shows a negative regular divergence which means there might be a downside pressure for a while and gives more credit to the head & shoulders pattern.

Bullish Scenario:
IF price got rejected by the ascending trend line, you can enter long on the first touch with a good RR ratio. Or, you can wait for the upside breakout of the 1760 level which is a resistance barrier for price, then enter long.

Bearish Scenario:
IF the ascending trend line (neckline) broken out to the downside, you can enter the short position right away or after the pull back. (Remember that pull backs always don’t happen).

I personally think that the uptrend for XAUUSD has been started and even if price comes down to 1705, it is a pull back to the broken descending trend line and after that we might see a big rise in the future.

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