InvestingScope
Short

XAUUSD: August 2013 Top hit. Conditions for a bearish reversal.

FX:XAUUSD   Gold Spot / U.S. Dollar
Gold extended its very aggressive rise since the end of May and reached the August 2013 1,434 peak. 1D and 1W are extremely overbought ( RSI = 88.227 and 79.095 respectively) calling for a relief pull back to at least the 1D Support Zone (1,348 - 1,377). This is where the Higher Low trend line (dashed line) supports this uptrend. A break below this line confirms a bearish reversal towards the 1,180 1M Support. Ideally we would want to wait for the Death Cross (MA200 over MA50) to confirm it.

Notice that in the August 2013 peak (1,434) the price was rejected towards 1,180 which at the time was also the 1D/1W Support from June's bottom. This was also done after a Death Cross occurrence and those bottom - high trading was the most volatile (swings of 250 points) short term time period for Gold in recent times.







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Great trade setup! @InvestingScope
+1 Reply
InvestingScope DACapitalTrading
@DACapitalTrading, Thank you DA.
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Nice chart as always.
+2 Reply
@ToeiyGenx, Much appreciated.
+1 Reply
ToeiyGenx InvestingScope
@InvestingScope, The cup and handle's neckline hasn't been tested, and monthly resistance hold, with these confluence factors, agreed with your idea btw.
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