In this article, we want to help you to determine the target for the Gold after the strong long-term uptrend line downside break in progress. We will use our top-down trading analysis to find the suitable entry point and the target.
You can see on a weekly chart that we have a downside break of the long-term rising trendline from Nov-16, 1290 level. This break is now making a case for an extended downside move into the key downside test 1260 level.
The daily chart is revealing the significance of this long-term rising trendline downside break. While most of the market participants have been waiting for a rotation higher off this consolidation triangle, the instrument has broken below the 1295 level with a strong daily bearish candle.
For a trade entry, we will use the H4 chart. The entry point should be on a possible pullback into 1290-1295 zone. The stop loss on short trade entry in this zone will be placed above the 1310 level. Target point with this break lower and indicated key long-term level would be 1260 at least. If you go for a full trading size on entry from this level the profit could be 3110$.
Happy trading! (click on the chart to enlarge it)
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