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Gold approaching short term top, has it? for FX:XAUUSD by vincehch

FX:XAUUSD

Since it’s breaching of 1760-1764 resistance, XAU has been invincible all the way until close to 1800 psychological barrier where it attempted twice until it successfully break out on its 3rd attempt, closing @ 1814 levels yesterday.

Looking at longer time frame XAU upside looks like to be capped at the strong downtrend channel , unless there are specific break through XAU can break out for the second time.

As for today, when looking into daily chart , RSI still is not too oversold which means it still has room to go up further, bear in mind even though it reaches oversold it does not necessarily mean it has reached its top, very much depending on price actions when hitting the oversold threshold and we can see how things unfold from there. But as for now, together with strong RSI upside potential XAU has also breached the upper line of DC yesterday meaning it is still well within the breakout price action, there is no reason to pick a sell at this stage, buy in dip is the rule of the game until it break supports below 1723.

Based on above analysis, I expect XAU to further grow towards 1850-1864 area, if you have open buy positions, book in half of profits @ 1850 and let the remaining half fly, set stop loss by $1 above your entry positions.

Above is no personal advice nor can be applied to anyone, but just my 2cents on recent XAU price actions.

Good luck trading!

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