Gold Prints a Long Legged Doji at Resistance

Good morning traders,

We change paths from our forex market focus, with one for the commodities traders today. Open up your MT4 platform and take a look at the Gold chart:

XAU/USD Daily:

Click on chart to see a larger view.

As you can see on the daily chart above, while the US Dollar has been dropping through 2017, Gold has been on a bullish tear.

The tear looked to come to an end when trend line support broke back in June. But as so often happens in a bullish trend, after only a short drop, price continued in the direction of the trend and has come back to hug the underside of the same bullish trend line.

I made this post with the intention of highlighting the long legged doji daily candle that has formed as price retests the underside of the broken trend line. But just keep in mind that all the doji shows here is indecision. Nothing more, nothing less.

It doesn’t have to represent a pending reversal.

With price now continuing to show bullish strength, it could just as easily continue to hug the trend line as price continues moving up, or even reactivate it as support and carry on with the original trend line like nothing had happened and it was never broken in the first place!

How do you see price action reacting at this point?

Best of probabilities to you!

Dane Williams – @VantageFX

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