XAUUSD is being rejected from a strong resistance 2435. A confirmed break above this level is needed for a channel breakout and an extension in the fifth Elliott wave short-term and long-term. This could be a fourth-wave pullback and support to trade long is 2300. Learn to Trade commodities profitably.
The Weekly XAUSUD chart reveals a broadening wedge with strong support at 2280. At this point, it is advisable to look for the long trade entries or buy positions as we are still in a strong uptrend despite the complex consolidation after reaching 2435. We will need to see a bounce here and a break above 2300 to see an extension higher, a test of 2435 again, and the extension of the fifth long-term wave higher. I am inclined more to see a swing upside from here as we are testing the channel support and a broadening wedge technically and unjustified sell-off fundamentally on Friday.
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As the famous trader says…
“Trading is very competitive and you have to be able to handle getting your butt kicked.”
Paul Tudor Jones
How to trade this?
It is a fact that a strong upside resistance for Q4 2024 is 2435 and If we get a confirmed break above this level we could see a strong upside continuation and new highs. Near-term, long-trade entries have a higher probability of success. Long trade entries are possible only on a confirmed price-action bounce from here with a narrow stop loss. You can try a long trade here with a stop loss below 530. The short-trade entry has a good Risk to reward. For inquiries about account management please write to [email protected].
