GOLD (XAU/USD) ... What Next ???

Hello Guys,
Back again with Analysis on GOLD (XAU/USD),

 
Gold as the world knows is considered as a safe heaven for Investors across the globe. Will it prove again ?
 

Let's see with the Help of Charts :

Looking at this chart, We find Gold moving below the falling trendline in short term, in Long Term Weekly or Monthly Charts also, the metal is moving below the falling trendline with bearish sentiments as of now. If we check the fibo retracement for the scenario, we will find the pair is trading below 38.2 fibo retracement, while it reversed from the confluence level of 1182 where short term rising trendline and fibo retracement level 23.6 coincide, to add to the supports the metal formed Hammer (Candlestick Pattern) exactly on the confluence level and the Metal started moving up. Now 1217-1218 level seem to be a tough level for the metal to cross. Let's see in the Next Chart what is in store for the Metal.

The same chart, looking slightly focused on the recent activities, The Metal here Looks like moving in a Rising Channel, and while Moving here, the Metal is forming a Chart Pattern Called "Cup and Handle" Pattern. The Pattern is being formed at exactly a position where it is much needed to be,in short the pattern is formed near the bottom of the recent activities. The Neckline of this pattern is exactly placed at the fibo level, making it a strong Resistance to break. The Formation is not yet completed, it is expected to be complete with next few candles or once the Price breaks above the Neckline area. If Neckline is break and price moves up, there will be some places where it will find good resistance ahead. First place will be the short term falling trendline resistance, Second place will be 38.2 fibo retracement level. The Cup and Handle breakout will give big moves, and the targets are bigger, May be a Huge Long Term Bullish Breakout. Hope for the Best :)

Recommendation:

 
XAU/USD (GOLD)
Buy Limit : 1201 & 1195
Stoploss : 1188
Take Profit : 1218 - 1232 - 1248 - 1266

Risk Reward is favorable with Max Risk of 130 pips and Min Reward of 170 pips. Trade with Proper Risk Management and Consult your Trading adviser before taking any trades. Leveraged Positions are not adviced by the author.

Disclaimer :
The Analyst is a Certified Investment Adviser and Working in International Markets since last 8 years.