XAU/USD (Gold) Long-Term Short Opportunity
Gold appears to be in an ascending channel and has made a massive move upwards over the last 2 months since it broke the EXTREMELY STRONG angled resistance line.
If you cycle down to the Daily chart the last two days candles have ended as a "doji" and "shooting star" candle.
Furthermore, the 4h chart seems to be creating a double top ("M") at the moment but that does have yet to be confirmed.
I think it's highly likely that price will drop back down to the angled resistance (now support) that it broke a couple months ago before heading further up long-term.
It's also possible that it comes down to the bottom of the channel but I think that's highly unlikely right now.
All this to say that right now, I'm currently short to the 1350 area and from there I'll look to go long again to at least the top of the channel and I wouldn't be surprised if price ultimately broke out of the channel and continued to move up.
COLOR KEY:
RED - Monthly
ORANGE - Weeky
GREEN - Daily
BLUE - 4H
If you cycle down to the Daily chart the last two days candles have ended as a "doji" and "shooting star" candle.
Furthermore, the 4h chart seems to be creating a double top ("M") at the moment but that does have yet to be confirmed.
I think it's highly likely that price will drop back down to the angled resistance (now support) that it broke a couple months ago before heading further up long-term.
It's also possible that it comes down to the bottom of the channel but I think that's highly unlikely right now.
All this to say that right now, I'm currently short to the 1350 area and from there I'll look to go long again to at least the top of the channel and I wouldn't be surprised if price ultimately broke out of the channel and continued to move up.
COLOR KEY:
RED - Monthly
ORANGE - Weeky
GREEN - Daily
BLUE - 4H