Gold Technical Analysis

Over the past weeks, Gold XAUUSD has been in a pretty solid uptrend, but that might be about to change as it has reached a pretty significant level. Gold has hit the $1400 level, which is in line with a falling trend line which has held from November 2012, and to confirm this, it has put out a Pin Bar on the weekly chart giving a sell signal to price action traders.

Gold Weekly Chart

If we take a closer look though, on the Daily Charts, we can see a Pin Bar has formed at a swing high, prices retraced but a bullish rejection candle has formed giving a buy signal.

Price has broken below the daily up channel and it will not act as resistance. What may happen is a possible up move further to the $1425 area, then price may begin to retrace, I am not quite sure on this one, so I have decided to wait it out and sit on the side lines.

Gold Daily Chart