XAUUSD shows signs of increasing downside momentum
XAUUSD found resistance just under the 200 day moving average at 1,230 last Friday, July 7. Moving Average Convergence Divergence (MACD) continues to indicate increasing downside momentum since reaching its recent peak at 1,295 in June 2017.
The close below the 1,220 level completes a bearish double top chart pattern, with a price target of 1,140.
We initiate a SELL entry stop at 1,195, just below 1,200 support.
Stop loss at 1,220, which is the neckline of the double top chart pattern.
Take profit at 1,140, which is the price target of the double top chart pattern.
Management and risk description
Time horizon: Two to five days.
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