Gold long-term downside sideways channel breakout test
On the Monthly Gold chart, we can see that the instrument is testing long-term downtrend sideways Andrew’s Pitchfork channel 1920 breakout level. Rejection from this resistance could lead to a deeper correction lower if we will not have a breakout this month. It could certainly to a test of this level lower. Monthly upside support liest at 1830.
On a Weekly chart, we can see an uptrend Pitchfork channel formed and a bounce of the upside channel support 1830. This bounce is giving us a good risk to reward long-trade entry possibility. You could open long trade with the stop loss just below 1820 to target the 1920 test again. Only a sustained break below 1820 could lead to an invalidation of an upside channel.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts. To learn more about Andrews’s Pitchfork tool trading strategy register for education.
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