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.
Remember to trade responsibly. Do not trade more than you can afford to lose. Trading can lead to loss of capital.
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