Are you looking for commodity setups for trading?
I’m Gucho!
Take a look at gold prices hanging near a major trend support area:
Gold (XAU/USD) 4 hours Planned by TV
If you have been watching gold prices for a while, you will know that spot gold has been killing the US dollar since mid-March when XAU/USD broke out from the $1810 levels.
In fact, XAU/USD has been trading within an observable bullish channel since late March.
Can the gold bugs keep the party going for the next few days?
XAU/USD is approaching the $2000 psychological handle which coincides with the 4-hours’ 100 and 200 SMAs, and the 61.8% Fibonacci retracement of the May rally. Nor is it very far down the channel we spotted.
Then there is a bullish divergence on the 4-hour time frame as the stochastic reaches a deeper “oversold” level while the price makes higher lows.
Going long at the $2000 mark might result in a decent risk ratio especially if you place your stops just below the channel and aim for XAU/USD’s May highs near $2070.
Before you buy like there is no tomorrow, though, you should note that the 100 and 200 SMAs appear to be flattening, indicating a slowing uptrend momentum.
If XAU/USD traders decide to range-bound the pair instead, we could see a move lower to $1,970 levels before gold sees more buyers.
what do you think? In which direction will XAU/USD go?