GOLD Working itself to top of the channel (scenarios)

Gold has been falling to the bottom of the channel for 70 days and seems to have bottomed out at the $1674 level (previous pivot point aswell as the bottom of the channel). Look for a trade upto the 78.60% fib retracement level and wait to see if it gets rejected and take profit. If it has a daily close above the channel and 78% fib retracement level. If there is a daily close above and there is alot of volumes on the day after this would be a signal to get into a long position to the previous rejection point ($1959.70) . if a higher high is made and it closes as a higher high this would indicate it has broken its bearish trend and has flipped bullish.

If gold however rejects and spikes a close below the top of the channel and the 78.6% level then this will give the signal to enter a short position down to the -27% level which is at the bottom of the channel.