GOLD – Renko Technical Analysis11th August 2015

From: http://renkotraders.com

GOLD (XAU/USD) – 10 Point Chart

GOLD (XAU/USD) – 10 Point Chart• Price broke down the support at 1140 - 1150 on a descending triangle pattern• The descending triangle points to a measured move to 980 - 1000• Price is currently retracing its losses on a bullish RSI divergence that could test back

to 1140 - 1150• A successful test of resistance at 1140 - 1150 will see a fresh bearish leg resume in

Gold• This trade set up could offer two potential trading opportunities. The first being,

taking long positions to target 1140 which is a counter trend trade and the second set up is to look for short positions from 1140 – 1150 zone with the aim to stay in the trade to target 1000

GOLD (XAU/USD) – 20 Point Chart

GOLD (XAU/USD) – 20 Pip Chart• Bullish RSI divergence is forming, which will be validated if price closes above 1120• Expected test to 1140 to test broken resistance and the divergence correction• Expecting a minor dip to 1100 head of the test to 1140

To Conclude• Looking to buy Gold on a retest to 1100 from the 10 Point Renko chart• Target would come in at 1140 with stops at previous lows near 1080• Based on how price action unfolds at 1140 – 1150 resistance, short positions will be taken up

targeting 1000 and 980 eventually• Expected time frame for this trade set up is about 3 – 5 months