Recommendation: BUY ONLY IF BREAKS OUT

Current Trend: Short-term up. Med and long-term sideways.

Strategy: Buy a close above $1300. (Or an intraday break above $1301, more aggressive).

 (Daily)

Chart Setup: The gold price is still in a med-term sideways channel. It tested resistance (line 2) last week and gave a classic bearish reversal candle down off it (on Friday). It’s still holding up, but it needs to give that breakout to trigger a buy signal.

Strategy Details: Buy only if it closes above $1300, which is last Friday’s high and also a round number. Note, aggressive traders however can attempt going long on an intraday break above $1301. But it carries more risk.

Target: If we get that break and close above $1300 it will point to $1379/$1380 i.e. the height of channel 1-2 projected up. Note, there is long-term resistance just before it at line 4 ($1375) where one should take profits. To the downside, support is line 3 ($1275). A close below $1270 would set up a drop to $1240.

Stop-loss: A close below $1275. But for the aggressive buy signal, place it much tighter, as a break of its prior one-day low, until it confirms by closing above $1300, at which point use the $1275 stop level. We’ll update trailing stops as the trend develops.

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