XAU/USD: Targets for Gold Above the Record High

3 ngày trướcGold broke out again last week after a 3 week rest.

You can visually see gold traders ‘taking a breather’ with 3x weekly doji candlesticks. 

Last week was the breakout - again - and notice how much quicker it took to break out this time versus the multi-month sideways action that started in May and lasted through August.

This is a much more bullish market now and bulls have less patience to get positions on.

But where do we go from here, if there is no resistance above a record high?

A tool we have found a lot of success with is the Fibonacci extension.

Do you see how the 161.8% extension called the top of the 4-month range we just mentioned?

The 200% extension, i.e. not just retracing all of the move lower but then doubling it - comes in at 2655. The 261.8% is the big one - that would get us over 3000 (3K!!). 



Given the bullish nature of this market, we’d be surprised to see gold retest former highs at 2520 but if it did that would be first natural support.

But somewhere between 2520 (support) and 2550 interim round number could offer a good risk:reward for a move up to our first target at 2655.

But that’s just what we think, do you agree or disagree?

Send us a message and let us know

Happy Trading! 

Jasper, WeTrade Market Analyst and Founder of Trading Writers.