ipuneet

Gold is showing resistance on weekly charts, 1645 is important

Short
OANDA:XAUUSD   Gold Spot / U.S. Dollar
Gold or xauusd is moving in a bullish channel on weekly charts.

Friday's top has touched this very line and closed a couple of dollars lower.

Breakouts on weekly channels are not seen very often, a cautious approach is a must at these levels.

I would wait for more SELL signals on other indicators before going short, 4-5 $ above the trendline will be the stop loss for this trade.

on certain momentum based indicators, some weakness can be noticed on hourly charts, this can be due to some profit booking ahead of weekend or initial signs or some sort of reversal or pullback in a overbought market.

Comments

It wont drop, keep buying and to be rich
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@initialjie, agreed with you. Gold wont drop.
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ipuneet shriraj.kulkarni
@shriraj.kulkarni, @initialjie Sirs, you are absolutely right, long term trend is up and strong. But intermediary corrections keep coming in a uptrend. The channel formations on weekly chart is important. The sell call I've given is subject to certain conditions been met.
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