Weekly chart for XAUUSD. Blue lines represent support and red lines represent resistance. Long term view is still gold bullish as 2015 low (at 1046.23) and 2008 low is not violated. The orange dotted trendline represents a possible view for gold to bounce off here and test the nearest red trendline resistance. Target is about 1220 in the weeks to come. If the orange trendline does not hold, gold should test the 2015 lows in the weeks to come. Personally, I am going with a bounce for gold to test 1220 or better as the daily chart for XAUUSD is encouraging for a bounce to 1190.
Comment:
Gold went to as high as 1150 yesterday. Price action is encouraging on the lower time frame. Using 1190 as target. Stop is moved to break even.
Comment:
Looking at the weekly gold chart, the move up is looking strong. This is based on the price action and the good volume on the move. Target for the weekly chart is 1225. Of course, this trade is closely tracked using the daily chart, which allows for adjustments to my positions on a daily basis. Just because the weekly chart looks good for gold to move to 1125 is not a guarantee that it'd be so.
