Buying on gold, anyone?
XAU/USD (GOLD):
Improved market sentiment weighed on safe havens Monday, with bullion slipping more than 1.80% vs. the US dollar. As highlighted above, Markets were buoyed after the US agreed to resume trade talks with China and hold off on additional tariffs on $300 billion of Chinese imports.
For traders who read Monday’s report you may remember the following:
On the H4 timeframe, traders can see the candles re-entered an ascending channel formation (1274.8/1344.0) in recent trade and retested the upper edge of the said channel Friday. Follow-through selling from here has the channel support in view as the next downside target, which happens to closely unite with weekly support at 1392.0.
Traders may also wish to acknowledge the possibility of an AB=CD bullish pattern forming (black arrows), which has a termination zone positioned between the 127.2% and 161.8% Fibonacci extension points between 1372.4/1386.7 (green area).
As is evident from the H4 timeframe this morning, price action is testing 1372.4/1386.7. Knowing this area is closely positioned to weekly support underlined above at 1392.0, there’s a chance we could observe a reaction take shape from here. This is despite daily price selling from supply at 1448.9-1419.9, and showing space to press as far south as support at 1356.8.
Areas of consideration:
Taken from Monday’s report:
On account of the above reading, the H4 green zone is considered a high-probability buy. Ultimately, stop-loss orders can be positioned beyond the area’s range, with the first upside target generally set around the 38.2% Fibonacci retracement of legs A-D (of the AB=CD pattern) at 1403.4, followed by a second take-profit level at the 61.8% Fibonacci retracement at 1416.9.
Improved market sentiment weighed on safe havens Monday, with bullion slipping more than 1.80% vs. the US dollar. As highlighted above, Markets were buoyed after the US agreed to resume trade talks with China and hold off on additional tariffs on $300 billion of Chinese imports.
For traders who read Monday’s report you may remember the following:
On the H4 timeframe, traders can see the candles re-entered an ascending channel formation (1274.8/1344.0) in recent trade and retested the upper edge of the said channel Friday. Follow-through selling from here has the channel support in view as the next downside target, which happens to closely unite with weekly support at 1392.0.
Traders may also wish to acknowledge the possibility of an AB=CD bullish pattern forming (black arrows), which has a termination zone positioned between the 127.2% and 161.8% Fibonacci extension points between 1372.4/1386.7 (green area).
As is evident from the H4 timeframe this morning, price action is testing 1372.4/1386.7. Knowing this area is closely positioned to weekly support underlined above at 1392.0, there’s a chance we could observe a reaction take shape from here. This is despite daily price selling from supply at 1448.9-1419.9, and showing space to press as far south as support at 1356.8.
Areas of consideration:
Taken from Monday’s report:
On account of the above reading, the H4 green zone is considered a high-probability buy. Ultimately, stop-loss orders can be positioned beyond the area’s range, with the first upside target generally set around the 38.2% Fibonacci retracement of legs A-D (of the AB=CD pattern) at 1403.4, followed by a second take-profit level at the 61.8% Fibonacci retracement at 1416.9.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.