Gold (XAU/USD) is reaching new highs again after a deep retracement to the 50% Fibonacci support of wave 4 (pink). Can Gold continue with its uptrend?
Dear traders, Gold (XAU/USD) is reaching new highs again after a deep retracement to the 50% Fibonacci support of wave 4 (pink). Can Gold continue with its uptrend?
Daily chart
The XAU/USD is facing hefty resistance at the trend line (red). But an uptrend continuation is likely according to our wave analysis. Either after a pullback or via an immediate breakout. A retracement could indicate the end of the wave 3 (purple) and the start of a wave 4 (purple). A breakout could mean an extension of the wave 3 (purple). A deep pullback, however, that breaks below the 50% Fib invalidates (red x) the wave outlook. Targets are the Fibonacci levels of wave 5 vs 1+3.
Good trading,
Chris Svorcik
The analysis has been done with the help of SWAT method (simple wave analysis and trading)
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