Gold / XAUUSD – On the daily time frame this precious metal is currently within an uptrend channel.
Yesterday’s price action saw it testing the bottom of the channel and a quick rebound ensued as buyers came in at the 1236.63 level.
Below that and we have price closing below the channel and the 15 ema. If this happens, it would give more bears the courage to come in.
Bulls resolve to protect price from going below the channel might see price back to the upside to test the downtrend line drawn in red. 1270 would be a crucial zone for the bulls to beat in order to resume up move. I expect bears to defend that zone too. So we can expect some volatility at that price zone.
Take note of these levels and trade well.
At the moment, stochastic is still pointing down. Downward momentum (a healthy retracement) might persist in the near term.
Take note: Keep your losses at 2% and do practice proper risk management in these Trump led movements in the market.
To your success!
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