GOLD SPOT XAUUSD Technical Analysis: Squeezing at a Wedge!!

It appears that GOLD SPOT XAUUSD has broken out of a long time ASCENDING WEDGE FORMATION, reaching a new high of @ 1764.5 on the second waves of Corona Virus fears and safe haven investing. Now, it has currently retraced back to the top of the wedge formation @1728 - 1730 regions, looking to validate it for the third time.

What to look for SHORT TERM BUY OPPORTUNITY:
- A rejection from support level @ 1728 - 1730, possibly more sideways action along the range @ 1730 - 1738 which is also the 0.786 Fib level proving as the next major resistance
- Note: An hourly close below 1726 definitely sees us a breakdown towards the bottom of the wedge @ 1715 the net level of support

Fundamentals Analysis (To keep a lookout for vaccine news):
- A short temporary pullback from the latest vaccine news release by the medtech firm Moderna: Vaccine studies shows positive results, albeit in 8 people only (size of the testing) --> I would expect a bigger GOLD SELLOFF IN JULY, as vaccine companies start gearing up for their third or so testing (in compliance with regulatory law)
- Overall Bullish momentum still intact due to unresolved China - US Tensions

As usual, trade with caution and remember to place stop losses!
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Best Regards,
GOLD D ROGER

تعليق:

Appears that our sideways action is performing as forecasted