- May 6, 2021
- Posted by: Tradingshot Articles
- Category: Commodities
As mentioned on a series of posts, Gold has been trading within a Channel Up since April:
This Channel had one major barrier before the short-term bullish sentiment made the leap to the long-term as well, and that was the 1D MA100 (yellow trend-line). The current chart is on the 4H time-frame for better illustration, so be advised that the blue line is the 4H MA50 while the green line is the 4H MA100.
So as you see XAUUSD closed its first 4H candle above the 1D MA100. The trend-line has also been hit both on May 04 and 03 but never had a 4H candle closing above it. So today marked the first time this happens since January 08!
So what happens now? Well if the Channel Up is sustained, then every dip within the 4H MA50 – 4H MA100 Zone is a buy opportunity targeting the Lower Highs of the January – February downtrend: Feb 23 = 1816.50, Feb 10 = 1855.50 and Jan 29 – 1876.00.
Pay attention to the 4H RSI which has a Resistance Zone that marks price tops within the Channel Up fairly accurately.