Gold at Prodigious Weekly Resistance

in forex •  20 days ago 

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Direct from the desk of Dane Williams,
This is not your average forex broker blog.


XAU/USD Technical Analysis

Morning team,

One for you #steemsilvergold junkies this morning.

I've never been the biggest fan of trading commodities. I hadn't spent the time to fully understand the risks of holding trades in these markets and have therefore taken a few losses that I should have avoided.

Taken unnecessary losses because of not clearly defining your risk before entering a trade? Who would have thunked it, right?!

Take the time to clearly define your risk and manage your position sizing accordingly. It's a pretty simple concept that can't ever be stressed too many times on this blog.

I didn't include Gold in my weekend market preview, but its the type of market that's on everyone's watchlist and mine is no different. This is a setup I've been stalking for a while.

First up, take a look at the higher time frame chart below (...and when I say higher time frame, I really mean higher time frame, with a look at the weekly).

XAU/USD Weekly:
190829-xauusd-w1.png

That chart looks a little different, doesn't it... Why am I using TradingView for this one you might ask? Well my MT4 broker's XAU/USD data doesn't actually go back as far as I need it to go, in order to highlight this weekly support/resistance zone.

TradingView charts are unreal though, and if MT4 brokers ever had full integration which allowed you to trade directly off of them, I'd be there in an instant.

But back to the XAU/USD weekly chart and the absolutely JUICY higher time frame support/resistance zone that price has just pushed up into. This zone can't be understated. A support/resistance zone quite frankly, doesn't get more significant than this.

You can see back in 2011/2012, price spent those couple of years respecting the zone from both the perspective of resistance and support, forming that epic top when Gold was finishing up its parabolic run.

But with the endless China v US trade war rhetoric and global recession risk, the risk-off market environment has seen the safe haven that Gold always has been, means that the XAU/USD market has ripped higher, back to test the zone once more. I can't stress just how much fundamental, not to mention technical momentum is behind this rally in XAU/USD.

I mean you just have to look at some of these bullish moves that we've even talked about trading here on the blog. Remember the juicy buy stops waiting to be cleared and then subsequently being destroyed as Gold ripped higher after an intraday retest?

With that sort of momentum in mind, trading from the short side simply because we are below higher time frame resistance is a risk. The trend is our friend and we need to make sure that at least on the intraday charts, that a short term change is in the offing.

It's these intraday setups that I talk about inside my Inner Circle. If you want to read how I'm looking to actually trade my analysis like this Gold at weekly resistance setup, then click the link below and get involved!

Join my Inner Circle

Best of probabilities to you,

Dane.


Today and Tomorrow's Economic Releases

Friday:
AUD Building Approvals m/m
CAD GDP m/m
USD Personal Spending m/m

Saturday:
CNY Manufacturing PMI



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Definitely running into some overhead resistance, but i think it's a buy on a pull back.

Find your levels, trade your levels.

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