Gold has some of the best technicals around. The market is carving its first higher high since August 2020 and has some very clear horizontal levels.
The last 20 months are similar to the price action between 2011 and 2019, only much smaller.
Notice the rounded bottom that’s forming above 1680 and how similar it looks to the 2011 to 2019 action.
XAUUSD also recently broke out from a triangle pattern at 1850. The objective of that pattern would take gold up to 2050.
So we know we have a confirmed breakout and the first higher high since August 2020. That means I only want to look for longs as the momentum has shifted in favor of bulls.
Now let’s take a look at some key levels to potentially trade.
The first is 1915, which XAUUSD closed above on March 1st. You can see how this level served as resistance between February 22nd and the 28th.
We don’t want to see gold close a day below that mark as it would re-expose 1880.
But as long as it’s above 1915, looking for bullish price action from that area makes a lot of sense, in my opinion.
That said, the 4-hour triangle pattern that’s formed (see below) could offer a breakout opportunity in the coming days. That’s the higher conviction setup, in my opinion.
Of course, that’s just my opinion and should not be taken as financial advice. Above 1960 resistance is 2015 and gold’s all-time high at 2075.
In summary: XAUUSD looks set to continue its uptrend in March if buyers can hold the price above 1915. A close above the short-term descending trend line near 1940 would confirm the breakout.