In this article, we will share top-down trading technical analysis for the Gold.
On the monthly Gold chart, we can see that the instrument is breaking below the long-term rising trend line 1247 level. This break if it is to be confirmed with a monthly close, will open the further downside extension into the 1151 level at least.Â
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The weekly Gold chart is revealing the test of a horizontal downside resistance 1222 level after the strong weekly break below the mentioned rising long-term line 1247 level. The RSI (13) is also breaking below the 30 level indicating further downside continuation. Now only a weekly close above the 1247 level will invalidate the downside extension scenario.
By using our top-down trading technical analysis we have identified the key levels which will be your triggers for a trading strategy in this instrument upon an important upside break of the long-term falling trend line. Preferred entry is short on a daily close below the 1228 level with the stop loss below above the 1230 level and an open take profit target.
Happy trading! (click on the chart to enlarge it)
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