Gold has dropped to my buy zone. Now what?

Sep 6, 2023

In yesterday's comment, I wrote that although XauUsd could drop to the 1930 zone, I will remain bullish and buy the dip, and I did.
At the time of writing my trade is floating with 30 to 50 pips loss and, although I would have wanted a straight-up arrow after my buying, I'm still bullish.
As we can see from the chart, after Gold dropped under 1900, a 700 pips leg up followed and after touching the falling trend line resistance started in May, began to drop again.
So far, the drop from the recent top could be only a correction, and, with the price trading exactly in a confluence of supports given by the 50% Fibo and the horizontal level a reversal is probable
With this in mind, I will hold my trade for now and expect reversal from this point with a clear confirmation of reversal to the upside above 1940. In this case, a new leg up is very probable and I will aim for 1980 resistance.
On the other hand, a drop under this level would put a pause on my bullish scenario.

Happy trading!
Mihai Iacob

Sep 6, 2023

Note

So far, the mentioned support zone is holding.
A NY close above 1935 would give us a bullish engulfing on daily, which will reinforce my bullish outlook