I’ve been bullish on XAUUSD since April.
The way gold rebounded following the March selloff was no doubt impressive.
It also hinted at a bullish continuation, which hasn’t disappointed yet.
First, we had the break above 1680 on April 13th.
That breakout exposed the 1750 resistance area.
After several weeks of consolidation, XAUUSD closed above 1750 on June 22nd, which opened the door to 1800.
The 1800 level broke down on July 8th.
That brings us to this week’s price action.
As you can see, XAUUSD has been hovering just above 1800 all week.
To be more precise, the level in question is 1795, which is the same level I pointed out in last weekend’s video.
Many thought Thursday’s selloff would cause gold bulls to lose their grip on 1795 support, but notice that the market never closed below that level.
As for next week, I think it’s going to take a daily close above 1815 for the next leg higher to materialize.
But as I’ve stated several times recently, there isn’t much standing in the way of a run at gold’s all-time highs just above 1900.
That means a daily close above 1815 from gold next week could trigger a $100 move over the coming weeks.
We’ll have to wait and see how this unfolds, but that’s my base case as long as XAUUSD stays above 1795 on a daily closing basis.
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Thanks Justin..Is it wrong to expect a major pull back like to 1750 for this big jump to 1900 and beyond.Gold seems over streched now and is Thursdays selloff an indication of that.Can we ready to expect a bull trap now?
thanks you
The resistance level is correct to be broken in order to move up. I agree.
I see on the H4 time frame that the uptrend was broken down and the retest of the previous support of that uptrend channel. If the price gets back inside uptrend channel it will mean the resistance level you mentioned is broken and the price is free to move up.
Your 1915.00 level is far away, but anything is possible.
I am expecting the price first to reach 1827.00 where the first resistance could stop the price. Second level is 1850.00 and the third is 1877.00.
From this moment I am waiting where the price will move. Will it move down from here to 1794 and there make another bottom or it will break above and move further up making new highs.
best regards,
Frano
GOLD LOOKING WELL if you look at ALL the 3 golds ie XAUEUR, XAUUSD,XAUAUD have one thing in common , one gold usd inside bar, and xaueur are coiling inside bars, and XAUAUD is combo inside bar i like trdaing inside bars in line with trend but not counter trade
The programme is really helpful
Wonderful analysis