Just thought I'd write a little update and educational piece on the current PA along with a challenge/homework at the end.
Notice that after the 1282 rejection (as previously postulated) the price dipped to its recent base. It seems to be forming a similar yet smaller pattern as before (green squares). In fact it doesn't really matter what the actual price is...
My view is that XAUUSD is about to make a big decision. It's maintaining within its upward channel and indeed being squeezed to resistance. This will break to the upside today. There might be some resistance at 1282 but I envisage a further climb to 1284-88. I've little doubt that next week will go up like the proverbial "fart in a bath" with an initial target...
Just an update to my last chart. BO confirmed and on our way! Long trade been active since 1236 :-)
See StochRSI. Looks like we have much further to go to the upside; DXY is polar opposite. Much bigger move up due, but careful there will be a pull back by Monday.
Happy pips traders!
Price has broken above the flag TL with increasing volume and the StochRSI oversold and rising. DXY is in inverse agreement and due to decrease. Next XAUUSD tgt area: 1250 - 1260.
Further on from previous charts, this weeks' move to the upside was a little premature and, for me, unexpected. However with easy opportunities for Long trades XAUUSD certainly hasn't disappointed. However..... it seems that the instrument now finds itself at a decision point. My guess (yes just a guess) would be to continue the current trend direction until the...
As per my last chart. This one is indeed confirmation. Lower to come, ranging next week, boringly easy trades but enjoy the pips! Next big event: 10th Dec... Winky face!
My view is that XAU seasonality is beginning to energise. The small look above the downward trendline (circled) today indicates to me that buyers aren't ready yet given the expected Christmas rally. Sellers came in to lower the price beneath with short targets spaced at $6-7 down to ~$1206 minimum. A bounce from or hold above any of these is possible, I will be...
Price seems to be playing bottom the short term channel. If it falls below 1227.33 bears could see a nice return with a TP@1216. However with StochRSI charging itself for a third bull run my prediction is a rise to 1238.XX in the following session, possibly tomorrows, before a pullback worth shorting tg to be decided. Current tg 1236-8 area.
