GOLD → False breakdown or breakdown? What's next?

30. Aug. 2023

XAUUSD forms a false break of 1919 support and forms a rally. Yesterday I talked about consolidation on D1, relative to resistance, where we should expect a breakout. It happened, but the momentum was bigger than expected

As part of the bullish momentum and breakout of the consolidation, the price also breaks the resistance of the ascending channel, which can be interpreted differently, depending on the view.
1) It can be a breakout followed by consolidation of the price in the green zone, which gives us a buy entry point and a long position scenario. In such a case, price could consolidate to 1947 quite quickly
2) It could be a false breakout. If the consolidation is prolonged and there is no bullish reaction, a false break of trend support is likely to happen, for us the important level will be 1932, consolidation below this line will allow us to enter the trade comfortably. We follow the price reaction on the chart and look for confirmation of signals.

Support levels: channel boundary, 1932.
Resistance levels: 1937.6, 1947
A flat is forming on d1, within this pattern there is a chance that the price will reach resistance, but globally, the situation with further price growth still looks suspicious.

Regards R. Linda!

31. Aug. 2023

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