Today, we will share with you a 4hs chart on XAUUSD
-In April, we opened long positions on the precious metal, and after two months, we are close to our expected target
-As you can see, after the breakout of the descending channel, we observed a straight bullish movement with an ascending trendline as the main structure of the current situation.
-Currently, we are observing a consolidation situation on the price after breaking a key resistance zone now working as support (1850 - 1860). We expect the price to stay above that level (otherwise, we will start thinking that our view is not going as expected)
-Regarding the long-term view we have on XAUUSD. If we look at a daily chart or weekly chart, we can see that the descending channel is actually a Flag pattern of a huge impulse. And we think the bullish trend will continue in the future, making new ATH. However, we also expect a several weeks correction on the next resistance zone (where we are planning to close our entry)
-Let's finish this post with the core idea. "The Target": We will be closing 100% of our position on the Green circle, we don't want to trade exactly on the edge of the resistance zone, and we rather sacrifice some pips and gain security on the target of our position.
-It would not be crazy to observe an apparent breakout of the resistance zone, giving the impression that the price will keep going up; however, based on the study we made of previous situations like this one, we think a correction in that zone has a high probability.
Thanks for reading!
-In April, we opened long positions on the precious metal, and after two months, we are close to our expected target
-As you can see, after the breakout of the descending channel, we observed a straight bullish movement with an ascending trendline as the main structure of the current situation.
-Currently, we are observing a consolidation situation on the price after breaking a key resistance zone now working as support (1850 - 1860). We expect the price to stay above that level (otherwise, we will start thinking that our view is not going as expected)
-Regarding the long-term view we have on XAUUSD. If we look at a daily chart or weekly chart, we can see that the descending channel is actually a Flag pattern of a huge impulse. And we think the bullish trend will continue in the future, making new ATH. However, we also expect a several weeks correction on the next resistance zone (where we are planning to close our entry)
-Let's finish this post with the core idea. "The Target": We will be closing 100% of our position on the Green circle, we don't want to trade exactly on the edge of the resistance zone, and we rather sacrifice some pips and gain security on the target of our position.
-It would not be crazy to observe an apparent breakout of the resistance zone, giving the impression that the price will keep going up; however, based on the study we made of previous situations like this one, we think a correction in that zone has a high probability.
Thanks for reading!
