Higher timeframe analysis of Spot Gold (XAUUSD) shows a clear bullish/bearish trend structure on the daily and weekly charts. Trading in alignment with the higher timeframe trend significantly increases our probability of success. Our algorithm has identified a trend continuation setup, initiating a SELL trade at 4384.00.
Trend continuation setups are ideal for swing traders. Our entry at 4384.00 sits at the retest of a daily market structure break. If the trend reverses, our invalidation point at 4396.00 will close our position with minimal loss.
Our long-term profit targets are set at TP1: 4374.00, TP2: 4364.00, and final extension TP3: 4310.00. We advise traders to hold a portion of their trade to capture the full extension to TP3.