Looking at the key levels within the gold chart, 1304.000, where the price is currently at and forming a bullish pin bar, along with the MA and EMA crossing and gold having rejected the previous key support of the 1295.000 level. Those areas of confluence all align to signal a bullish move. We have bullish rejection from the previous key support level, MA and EMA crossing, and a bullish pin bar forming at the next key level of resistance showing signs of a bullish push at the resistance. Finally Gold is making higher higher and higher lows... An obvious uptrend and remember, trend is your friend. Buying a breakout from a resistance zone in an uptrend with numerous levels of confluence cannot be one of your poorer trading decisions or at least I hope not.
I will be awaiting a break out of the 1304.000 level before buying and the first take profit target will be 1310.000 and the next will be 1322.000 levels. I believe gold has a longer term upside potential of 1340.000, a weekly resistance.
Let me know if you have any comments, suggestions or idea's. Please feel free to look at the XAUUSD chart and look at the key levels I have highlighted within my analysis to see exactly why I have highlighted them.
I will be awaiting a break out of the 1304.000 level before buying and the first take profit target will be 1310.000 and the next will be 1322.000 levels. I believe gold has a longer term upside potential of 1340.000, a weekly resistance.
Let me know if you have any comments, suggestions or idea's. Please feel free to look at the XAUUSD chart and look at the key levels I have highlighted within my analysis to see exactly why I have highlighted them.
Comment:
Target one of 1310.000 would have been reached and the upper wicks at this level would have given me enough reason to close the trade and not pursue 1322.000 in that particular trade. Await a new entry.