XAUUSD(GOLD) is currently trading at a 1925.565 levels which acts as a major support level (highlighted in the picture in red outline) in the daily time frame.
A Long/Buy Side opportunity can be seen in the charts on the basis of simple breakout and retest basis. A pictorial representation of the same is shown on the right hand side part of the Chart.
Risk to Reward is also favorable for a Long/Buy position at the current price. One can enter now at 1926 and keep the SL at 1890. Anything above 1:3 can be taken as target but on the basis of technical analysis 1:7 shall be achievable ( Long position representation shown in chart)
The above strategy has given good results previously in XAUUSD
For reference: As seen in the charts XAUUSD gave a breakout from a major resistance on 20th Dec 2022 and gave a retest to that resistance (now support) on 27th Feb 2023 and then gave a massive up move. ( Refer Chart ).
Commentaire:
1:2 Achieved