Gold - XAU/USD - Only safe to go Short?

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1

I know the majority of members here are from Trading212 investing but i’d also like to know CFD’s members.
Check this beautiful downtrend we have in Gold since August 2020. We tried to break, but we failed. So we should be back to the trend.

I suppose it should go to 1760 and if goes even further down, I’m looking to catch ~ 1700.
The region of ~ 1760 stills an important region. So we might be careful there.

Daily Chart

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However, we must be careful with strong Weekly uptrend.

Weekly Chart

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I’ll be monitoring 4h breakouts for any rejections.
Will try to keep this thread updated too.

  • Important note for Weekly Charts!!
  • It’s the first time Bill Williams’s Awesome Oscillator turns into Bearish since 2018!!

But what do you guys think about gold?

Who are you on Gold right now?
  • Bull
  • Bear
  • Sideways

0 voters

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I wish we saw more posts like this.

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I would add a moving average to the chart. For example a 200 SMA (when trading on daily) or 50 EMA or something for shorter periods. Shows the trend a bit better.

In your case you are trading daily/weekly charts. Add 200 SMA. Price above 200 SMA only long positions, price below 200 SMA only short positions.

Based on just a channel I can’t say if it is safe.

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Appreciate. I’ll post more analysis in further moments.

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Absolutely. Thanks for the kind feedback! Will add this note in further analysis :heart:

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Also keep in mind the economic events. The price of gold is related to the USD. USD is weak recently, so investors go to their safe haven gold. When USD will get stronger, I think gold will go down in price.

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