Gold or XAUUSD has been in a wide descending channel also called a bull flag. Gold topped in august of 2020 with an all time high of 2075 ever since then it has been sliding within the wide channel. currently at it bounced from 1680 support and that is of interest.
Yesterday’s bounce not only produced a double bottom it also produced a bullish engulfing bar. Considering the bull flag, double bottom and engulfing bar I would say that I expect the XAUUSD to turn towards the top of the channel in the region of 1860.
Entry can be at 50% retracement of the engulfing bar or above the engulfing candle. I prefer the 50% retrace because it provides a better a R-ratio.
Resistance in the way up include 1770,1806 and 1850 support remains 1680 only a close below 1680 will negate this bullish idea.
XAUUSD daily time frame.
Engineer, Entrepreneur, forex trader and Analyst
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