Daily Price Action
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Gold Has a Critical Decision to Make

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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.

On April 16th I wrote about a significant breakdown for gold.

The market had just cleared key support at 1280, an area that had held the market above it throughout 2019.

However, I also pointed out a confluence of support at 1260 in that same post.

As you may well know, support and resistance are often areas or zones rather than exact prices.

The 1260 region is no different.

Following the break of 1280 support on April 16th, gold retested trend line support that extends from the 2018 low.

The market didn’t quite make it to 1260, but it has tested trend line support nonetheless.

This leaves gold with a critical decision.

If buyers intend to keep this rally intact, they need to secure a daily close back above the 1280 handle.

The “daily close” refers to the New York 5 pm EST close.

Go here to get instant access to the same New York close Forex charts I use.

They’ll also be required to clear the trend line from the year-to-date high near 1290.

On the flip side, if sellers want to continue to push their agenda, they’ll need to break trend line support on a daily closing basis.

While the price structure for gold in 2019 looks relatively bearish, I’m not going to rule out the possibility of a bullish move here.

It’s always a good idea to plan for both outcomes regardless of how convincing a particular outcome may appear.

I also think it makes sense to step aside for now.

Gold needs time to figure itself out. I wouldn’t want to have capital on the line with this much indecision surrounding the next move.

To summarize, a daily close above 1280 would expose the trend line near 1290 while a close below 1260/70 would open the door to 1240 and perhaps 1215.

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XAUUSD trend line support and resistance

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28 comments
Justin Bennett says

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    Emmanuel Pyuza says

    am using Admiral broker can i use charts with you

    Reply
      Justin Bennett says

      I don’t know anything about them, sorry.

      Reply
ibrahim says

bravo justin

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    Justin Bennett says

    Cheers, Ibrahim.

    Reply
Colin says

I think gold is having a small move up before moving back down to around 1260. This should complete wave 4 and the commencement of wave 5. We will see what happens.
Cheers
PS thanks for your charts
Colin

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    Justin Bennett says

    You’re welcome.

    Reply
Isaac says

Thank you

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    Justin Bennett says

    You’re welcome.

    Reply
EHIZ says

Is that not a bearish pin bar i’m seeing at 1280.00 old support turned resistance? it looks like gold is headed back to 1268.00

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    Justin Bennett says

    Not that I see. But regardless, gold needs to break free from the levels I outlined above.

    Reply
    Pierre Mifsud says

    I perfectly agree with you mate to 1268.10 but I . 1 hr time frame is clear and possibly 1245.5 ON THE DAILY

    Reply
      Justin Bennett says

      I wouldn’t want to rely on any intraday timeframe when dealing with levels that have been in place for months.

      Reply
Olakunle Akinola says

I need help for payment I paid on behalf of my friend in Nigeria for membership since 04/24/2019 till now he didn’t receive confirmation code

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    Justin Bennett says

    If you sent me an email, I will respond tomorrow.

    Reply
      Abubakar Mahdi Alhaji says

      Pls is it that you have a signal group that one can join by subscribing?i would like to know pls.Thanks

      Reply
gabriel says

Thank you for the update

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    Justin Bennett says

    You’re welcome.

    Reply
Peter promise says

Thanks Justin

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Pierre Mifsud says

Clear 1268 retest for me

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Sam says

Thanks!

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SwingMann says

A falling triangle with pullback to 1233

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Greg says

Thank you Justin. As always a valuable insight! Do you think the 38.2% retracement of the ’18 low to the ’19 high is of any significance yet, or is it too soon?

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Prashant says

dbl bot at 1266?? if so can be off to races ..

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    Justin Bennett says

    That isn’t what I’m watching.

    Reply
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