Technical levels for XAUUSD continuation pattern
These levels here apply to bulls looking for long side setup. This is based on that decisive new 52-high achieved last Friday that terminates previous trend. This 2013- 2015 down trend was discussed here ‘Gold bullish strong resistance overhead; year – year down intact‘.
In my opinion however, once 2015-high of 1307 was broken decisively, the down trend is over.
— Soh tiong hum (@Sohtionghum) June 24, 2016
Fib-R offers some reference for potential support
Strong Fib-R levels associated with continuation are 23.6% and 38.2%. In fact 23.6% is the favoured level (covered here) when sentiment/momentum is very strong in favour of continuation move. Should 23.6% be insufficient, the next level is 38.2%. In this particular chart, 38.2% Fib-R has support from confluence with previous resistance at 1293-1297 region in line with January 2015 high.
In between ‘2YH’ is also a level to work with.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
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