It appears that GOLD SPOT XAUUSD has broken out of a long time ASCENDING WEDGE FORMATION, reaching a new high of @ 1764.5 on the second waves of Corona Virus fears and safe haven investing. Now, it has currently retraced back to the top of the wedge formation @1728 - 1730 regions, looking to validate it for the third time.
What to look for SHORT TERM BUY OPPORTUNITY: - A rejection from support level @ 1728 - 1730, possibly more sideways action along the range @ 1730 - 1738 which is also the 0.786 Fib level proving as the next major resistance - Note: An hourly close below 1726 definitely sees us a breakdown towards the bottom of the wedge @ 1715 the net level of support
Fundamentals Analysis (To keep a lookout for vaccine news): - A short temporary pullback from the latest vaccine news release by the medtech firm Moderna: Vaccine studies shows positive results, albeit in 8 people only (size of the testing) --> I would expect a bigger GOLD SELLOFF IN JULY, as vaccine companies start gearing up for their third or so testing (in compliance with regulatory law) - Overall Bullish momentum still intact due to unresolved China - US Tensions
As usual, trade with caution and remember to place stop losses! Feel free to comment and like this post if you enjoyed it!
Best Regards, GOLD D ROGER
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Appears that our sideways action is performing as forecasted