Latest GOLD (XAUUSD) technical analysis shows possible consolidation in the range between 1360 to 1440 range before any significant breakout is seen. Our last week’s recommendation was to short GOLD above 1434 and go long on reversal from 1360. The price action was exactly as predicted, GOLD price dropped but the reversal was seen at the top side of the support zone at 1382. This did not give traders a chance to enter the recommended long trade.
GOLD price shot up to 1437 (a 500 pip move) and was rejected at the resistance zone as expected. However, the H1 reversal bar had a range of 100 pips bringing down the price to below 1428 – much below our recommended entry level at 1434. The price came down sharply to the 1390 again.
Aggressive traders with higher tolerance would have make good gains. Our recommended trade entry levels after H1 reversal bar have missed out on this near perfect weekly technical analysis.
For safe traders, there are always plenty of trading opportunities – Sticking to a plan and having the discipline to stay out of the temptation to jump in is part of the emotional challenge manual traders need to master. There is nothing wrong in being an aggressive trader as long as the plan to be so is defined before-hand. Gains and loss will need to be taken as part of the business of trading with minimal or no emotional reaction to the result.
Based on this week’s technical analysis of the GOLD 4 hour chart, we expect price to consolidate in the range between 1360 to 1440 range before any significant one way direction is seen.
GOLD (XAUUSD) Recommendation for this week:
Short GOLD @ 1435 (after a H1 reversal bar) with Stop loss above 1440 for Targets 1400 and 1360.
Long GOLD @ 1385 (after a H1 reversal bar) with Stop-loss below 1375 for Targets 1400 and 1430.
Long GOLD @ 1365 (after a H1 reversal bar) with Stop-loss below 1355 for Targets 1400 and 1430.
Always define your risk tolerance and trading goals before starting to trade – sticking to a plan is as important as the technical analysis itself.