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XAUUSD: Gold Bottom in Place?

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Gold (XAUUSD) looks poised for higher ground in 2021.

Despite the pullback that began last August, the market has been trending higher since 2016.

Even this latest pullback looks constructive.

Notice the bull flag pattern that has developed over the last few months.

XAUUSD daily time frame

I’ve discussed this bullish continuation pattern at length in recent weeks.

However, the big question everyone wants answers is, will the $1,770 low hold going forward?

In other words, is it a good time to buy gold?

I can’t and won’t tell you what to do with your money, but I do think there’s a good chance the $1,770 low holds.

A look at the daily time frame below shows what could be an inverse head and shoulders pattern.

For it to play out, XAUUSD bulls need to close the pair above $1,960.

Of course, if that happens, it means gold is already above the descending channel top near $1,930.

If this is a 4-hour inverse head and shoulders, the measured objective is near $2,150.

As for the bull flag above, the objective remains $2,380.

That’s true as long as XAUUSD holds above $1,770.

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XAUUSD daily time frame

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9 comments
Justin Bennett says

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Martin Njeru says

THANKS MASTER, YOU KEEP MENTORING ME , I USUALLY THOUGHT THE SAME, THANKS YOU REM ON KIWI FOLLOW UP AND ITS ONE OF THE TRADES I HAVE TAKEN THIS WEEK,,,,,EURAUD WE TAKE IT TO DIP THANKS IN ADVANCE.DO YOU TRADES SOME ” BINARY ASSETS” ADMINISTERED BY BROKER CALLED DERIV.COM? ARE THEY LEGIT?

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ali says

thank you justin for the up date.

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The Kid says

Support at $1680 and if that does not hold then major support at $1435. Applied fibo levels from 2015 low to current last high (July 2020). We have had a 23.6% retracement with sideways consolidation. Look for signs of inflation setting in before it hits a bottom. Get long again once the monthly Stocastics bottom out. Bias down deeper than down 🙂

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The Kid says

Support at $1680 and if that does not hold then major support at $1435. Applied fibo levels from 2015 low to current last high (July 2020). We have had a 23.6% retracement with sideways consolidation. Look for signs of inflation setting in before it hits a bottom. Get long again once the monthly Stocastics bottom out. Bias down 🙂

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Samantha kumar halder says

Excellent analysis

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SYED says

THANK YOU YOUR ANALYSIS IS EXCELLANT

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ELVIS IGBEN says

Thanks Justin for confirming my observation . I notice that after the failed brakeout of the bull channel.

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Thomas Rushton says

Hi Justin, – there’s a strong trend line on the Daily Chart from the lows in March 2020 through the higher lows in Nov 2020 – I’m considering shorting Gold if it can’t get back above that trend line on the Daily Chart and its not doing that at the moment – could you add your comments to that opinion please if you get a moment?

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