Here is the quick chart review of spot GOLD XAUUSD.  You can also find last week’s chart review here.

The best way to understand the movement is to look at the charts in multiple time frame. The charts basically explain everything. I will just try to give brief descriptions.

On Thursday, Gold broke away from  resistance level 1347.83, the immediate target is seen at 1392/98.

Here is the Daily Chart with key levels marked.

Looking into 4-hour time frame, we can find some details about the price movement. Last week, we saw the break of down trend line, and also the resistance level around 1316.22. The best opportunity,and more conservative way to enter a long trade is to wait for the pull back to the broken resistance level. As shown in the chart, price respected the level 1316.22, and made another run to the upside after retesting the level.

Here is the 4-hour chart with key levels marked.

Here is the H1 charts with more detailed trend lines. I won’t go into too much details about the trend lines, probably in other posts.  Just to show that there are trading opportunities around the identified support and resistance levels.

That’s it. Just a quick  chart review. Hope it helps or at least, the lines did not confuse you.

From the desk of TraderGav.com

RSS Feed migration: Just a quick reminder to those who subscribed to RSS feed of this site prior JULY 2013. I will be switching off Feedburner email delivery this weekend. You should be receiving an email to inform you about new email subscription (via Aweber).

As always,for new visitors, to stay updated with me, please sign up for the free update at the sidebar.

Just a quick post of one of the trades I made yesterday. I thought it might provide some educational value to my now 13 readers.

I went long of USDJPY around mid London session yesterday. My entry was not the best I would like to have.  I saw a small consolidation cluster around 96.75 , and it, in fact, broke the inner trend line. (Refer to the blue bold line in the chart below).  My view was, the consolidation above inner trend line might potentially be a launch pad for a upward movement.  Well, it dipped a couples of hours later, but never go beyond 50% retracement of the current swing. Stop loss was not triggered.

In retrospect, the dipped after my entry was indeed a retest of another broken down trend line and support level. In hindsight, this is a better entry, but hey,that’s trading, and everything looks better in hindsight, no?

Target is set at 97.40. This is the price projection measured by using the Fibonacci extension of 161.8, golden ratio, of the lowest swing low to the break of inner trend line.  The target was achieved during Tuesday Asian morning session.

2nd target is set at measured move up to around 97.80 which is also a resistance level.

Here is the 1-hour chart of USDJPY.

I suggest to have a look at Steve’s NBT posts for the concepts of price projections for target setting.

That’s it for now. Have a good trading week ahead!

From the desk of TraderGav.com

Here is the weekly review of spot GOLD XAUUSD levels. You can last week’s chart review in this post.

GOLD reacted at the resistance level and also 50% retracement of D1 down leg. 1347.57 is now the level to watch for any false break should price retrace back to this high. Overall, GOLD is contained in the Daily down channel. The key levels to watch now are 1297.55 for resistance and 1268.40/1272.22 for support.

Here is the Daily Chart of spot GOLD

In 4-Hour time frame,  I am watching closely is the potential break up of the H4 down channel. Refer to the 4-hour chart below, a break of this channel, and 1297.55 might bring us back to 1347.57 as mentioned before. On the hand, a break of support level 1268.40/1272.22, I will be looking at potential short setup at the pull back.

That’s all for this post.

From the desk of TraderGav.com