Signal Update- Gold is trading near highs, 100 points above our entry – Take Profit & look for correction
This is a follow up to our GOLD BUY signal trade from November 26th in which we enter at $1,450 price level. Today, we see gold futures already trading at $1,550 level and the XAU/USD at $1,548, a 100 points run! since our entry. At this point gold is trading next to September 2019 highs at $1,552 and it would be wise to lock in gains today on part or all position. In addition, traders can open a short position for a small correction down to the $1,520 level, allowing more traders to join the trade after a price correction. Look at the chart below to see our current trade signal.
While the price of gold (xau/usd) continues to correct its June-August price run, the long term chart (see below weekly time frame) shows potential for a major price bounce from current price level (1,450).
Gold traded at a range throughout the week and XAUUSD prices stayed approximately unchanged during the last three trading days. Looking at the chart we can see that gold is trading above the 200 day moving average (40 averages on the weekly chart below) and the volume pattern shows buyers are more aggressive than sellers. In addition, the price of gold has stayed in an upward channel this year, trading between support and resistance channel. Considering the above, gold has a great potential for a price bounce up from the current $1,450 zone.