Long-term TA XAU/USD

This is the first time I am just writing based on completely on TA, I feel now is a good time to focus on this. I have picked a monthly chart to allow better long-term analysis. We are reaching a breaking point, something I picked on in my previous article and it look bearish to be honest. This is just based on looking at the charts downward trend we have witnessed for a few months now after the April high but TA is pushing doubt into whether I believe this looks likely.

RSI is gaining, going forward to the upper bands after a strong rebound. Of writing this the RSI is at 65. But my Bearish belief is questioned with the potential here for a major breakout, yet volume is nothing similar to what we saw during the early period of 2018 and that is why I feel it would be hard to see a strong rally for the precious metal anytime soon. Yet the Bollinger Bands highlights Gold is now regaining slightly after hitting the Lower Band, this could then mean we see a slow burner, with a rush in the Bull position looking unlikely but Gold sticking around the $1300 mark and above is definitely possible. Furthermore, volatility using the Bollinger Bands isn't showing too much shift currently. So its still hard to workout long-term what we will see. Now because of how horizontal we are its hard too see when a breakout might take place but long-term I actually don't know for the moment haha, need more practise!

Peace.


The Naive Trader.




TradingView.com, 2018.