Gold Major Resistance

There are only twelve monthly candle closes a year and they are important to take note of. The monthly timeframe is the timeframe that market experts start their top down analysis from. The higher the timeframe, the more revealing the chart is.

The chart is Gold XAU/USD monthly timeframe - from the monthly timeframe we are able to see that price is trapped between an ascending trendline and the 1350.00 resistance area.

Back in 2014 we saw price break to the downside of the 1350.00 area and the EMA's crossed to the downside. Price is now back at this area and our EMA's have just crossed bullish.

January's candle has closed bullish just below the 1350.00 resistance. This is the 3rd time since 2016. A break and a monthly close above the 1350.00 resistance area within 2018 would show the potential of a bull run for gold.

Chart: XAU/USD M1