XAUUSD has tested a strong long-term upside resistance of 2140. A break above this resistance will open a new strong bullish cycle but we are seeing a terminal phase of the long-term and short-term Elliott Waves in the consolidation rising wedge which is not giving us a bullish expression. If we get a rejection here like we are seeing it and a confirmed break below 2000 we can say that the upside cycle is over and we will probably see a news swing lower to 1920.
The Weekly XAUUSD chart reveals the rising price action wedge, a test of its upside resistance, and an already-mentioned key level of 2100. A break below 2050 is required to invalidate the immediate upside extension and will mark the fifth wave higher finished, which will lead to a deeper five-wave correction. It is advisable to position yourself in just one trade direction and not to try to catch every swing. If we get a break below 2050 it will mark the five waves upside finished and will lead to a bigger reversal lower as said.
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“Where you want to be is always in control, never wishing, always trading, and always, first and foremost, protecting your butt.”PAUL TUDOR JONES
How to trade this?
It is a fact that a strong upside resistance for Q1 2024 is 2130. If we get a confirmed break here we could see a strong upside continuation and new highs. Near-term, short-trade entries have a higher probability of success but for the conservative traders upon a break below 2050. Long trade entries are also possible but only on a price action confirmed break above 2130. You can try a short trade here with a stop loss above 2090. For inquiries about account management please write to [email protected].
