Anyone feel a short could be in store for gold?
XAU/USD (GOLD):
Upside momentum slowed considerably Monday, consequently concluding the session unchanged.
In view of the weekly timeframe, bullion is seen crossing swords with the 2018 yearly opening level at 1302.5, which happens to merge with supply painted at 1309.3-1289.9 (red arrow). In collaboration with weekly structure, daily action is seen challenging a Quasimodo resistance printed at 1303.0, following a strong upsurge north from a channel resistance-turned support (taken from the high 1214.3). In addition to the current Quasimodo, another layer of Quasimodo resistance is seen nearby at 1307.7.
Should the market respond from the aforementioned higher-timeframe resistances, H4 structure reveals the next downside target falls in around a trend line resistance-turned support (extended from the high 1298.5). What’s also notable from the H4 timeframe is the RSI indicator is visibly interacting with its overbought value.
Areas of consideration:
Taking into account the market’s position on the higher timeframes at the moment, it would be particularly difficult to enter long, based on our technical studies. Therefore, the research team notes to keep eyes on H4 action around the aforementioned higher-timeframe resistances today. If price forms a bearish candlestick formation that is of notable size in relation to neighbouring candles, a sell could be something to contemplate, targeting the H4 trend line resistance-turned support underlined above as an initial take-profit zone.
Traders are, however, still urged to take into account risk/reward parameters to the first take-profit target before executing a trade. Anything less than a 1:1 ratio can make it challenging to exit the trade at breakeven should the market react and push higher from the first target.
Upside momentum slowed considerably Monday, consequently concluding the session unchanged.
In view of the weekly timeframe, bullion is seen crossing swords with the 2018 yearly opening level at 1302.5, which happens to merge with supply painted at 1309.3-1289.9 (red arrow). In collaboration with weekly structure, daily action is seen challenging a Quasimodo resistance printed at 1303.0, following a strong upsurge north from a channel resistance-turned support (taken from the high 1214.3). In addition to the current Quasimodo, another layer of Quasimodo resistance is seen nearby at 1307.7.
Should the market respond from the aforementioned higher-timeframe resistances, H4 structure reveals the next downside target falls in around a trend line resistance-turned support (extended from the high 1298.5). What’s also notable from the H4 timeframe is the RSI indicator is visibly interacting with its overbought value.
Areas of consideration:
Taking into account the market’s position on the higher timeframes at the moment, it would be particularly difficult to enter long, based on our technical studies. Therefore, the research team notes to keep eyes on H4 action around the aforementioned higher-timeframe resistances today. If price forms a bearish candlestick formation that is of notable size in relation to neighbouring candles, a sell could be something to contemplate, targeting the H4 trend line resistance-turned support underlined above as an initial take-profit zone.
Traders are, however, still urged to take into account risk/reward parameters to the first take-profit target before executing a trade. Anything less than a 1:1 ratio can make it challenging to exit the trade at breakeven should the market react and push higher from the first target.
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