Gold broke a huge Resistance level recently

Wanted to see what you guys think about this potential setup?

I noticed XAUUSD broke pretty heavy resistance level the other day. It shot up and then dropped, and started wedging. I think it’s going continue up to the Fibonacci 78.6% line, then go back down to the supporting trend line. It might even go all the way back down to the resistance turned support.

I’ve added a photo. Curious to hear your thoughts.

I think the huge resistance level was $1900 and it was broke some time back.

This resistance was 9 years in the making. Any other short term resistance just broken is neither here or there.

But wouldn’t the red box be considered a resistance zone? So wouldn’t it be just as significant to see gold break the top of a resistance level? Or am I just looking at it wrong?

I’m learning still, so sorry if I’m asking a dumb question lol

EDIT: NEVERMIND!!! I was not looking at what happened in July. Now that I’ve zoomed out, it looks like the 1900 line was broken, then Gold shot up, then came back to retest and is continuing on it’s trend.

Right?

From 1D Gold still in sideways
https://www.tradingview.com/x/EjngxCQi/ There is no strong bullish momentum yet, or broke Lower High.
Best RR to long was at retest thursday, after bullish rejection at wednesday.

The issue here is that for every trader there is a different way of interpreting resistance.

Your original post said ‘huge’ and as a gold trader of many years the only huge resistance was getting over the hurdle of 1900 - one that has been in place since 2011.

With that said, there is nothing wrong in your chosen timeframe or way you are viewing it.

With gold so far managing to hold $1900 I think all surprises will be to the upside

I am still waiting for gold to fall back hard - but part of that is from being a hard to done gold bug for so long

What we need to realise is that gold is in a new era

Take a look at a chart of gold during the 70’s.

In 1974 gold make a peak at $180 and it took four whole years to break it. It then went on to hit $850 albeit very briefly.

In 2011 gold hit a peak of $1900, and it’s taken 9 years to break it.

We are in now in a new cyclic bull market and so gold can go much higher.

If you are currently struggling as a trader - there is nothing that moves like gold, easier to trade than gold when it’s in a bull market, so you all need to make it a central part of your trading.

It’s all very well and good trading of tiny timeframes but the big money will be made on taking a slightly longer term approach (daily timeframes)

Snapping at a measly 2:1 profit is not the way to play a gold bull.

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Following historicals Gold is bearish from the 9th September through to the 23rd September.

At present gold has fallen on the futures market and I am expecting a pullback to the 50% fib. Although I am long gold as I sold a put so I may experience some short term draw down.

Cheers

Blackduck