Originally published by AxiTrader
Trendlines are important in trading.
For me, if I was forced to only use one indicator of potential price moves, of support and resistance then in a universe of seemingly limitless trading indicators it is trendlines that I would default to.
So with gold having made a double top around $1,361/66 recently and the last 4 days of weakness, it is now back testing a little trendline and thus support.
So today I wanted to highlight that this $1322 level in XAU/USD looks like an important one which, if broken, could suggest a run back to recent lows at $1306 - possibly lower.
Of course if this line holds, with a bit of tolerance so maybe call it $1320/22, then gold looks okay. But if that zone does break then a move lower toward $1,300 perhaps even the 200 day moving average at $1285 could be on the cards.
Here's the chart.
Have a great day's trading.