Gold Short – Targeting Downside After Resistance Rejection
Updated
Gold (XAU/USD) is currently facing resistance around the 2,518 area, where it has shown signs of rejection. This presents a potential short opportunity, aiming to capture downside movement as the price pulls back from this level.
Technical Analysis:
• Resistance Rejection: The price has tested and rejected the resistance level, indicating a potential reversal or pullback.
• Downside Target: The initial target for this short setup is around the 2,500 level, where support may come into play.
• Risk Management: Place a stop-loss above the recent high around 2,520 to protect against any further bullish breakout.
Market Sentiment:
• Bearish Bias: The rejection at resistance suggests that sellers are stepping in, increasing the likelihood of a downward move.
• Key Levels: Watch for any break below 2,510, which could accelerate the move towards the target zone.
This trade setup leverages the current rejection at resistance, aiming to capitalize on a potential pullback. As always, manage risk carefully and be prepared to adjust the strategy based on how the market evolves.
Note: Please remember to adjust this trade idea according to your individual trading conditions, including position size, broker-specific price variations, and any relevant external factors. Every trader’s situation is unique, so it’s crucial to tailor your approach to your own risk tolerance and market environment.
Technical Analysis:
• Resistance Rejection: The price has tested and rejected the resistance level, indicating a potential reversal or pullback.
• Downside Target: The initial target for this short setup is around the 2,500 level, where support may come into play.
• Risk Management: Place a stop-loss above the recent high around 2,520 to protect against any further bullish breakout.
Market Sentiment:
• Bearish Bias: The rejection at resistance suggests that sellers are stepping in, increasing the likelihood of a downward move.
• Key Levels: Watch for any break below 2,510, which could accelerate the move towards the target zone.
This trade setup leverages the current rejection at resistance, aiming to capitalize on a potential pullback. As always, manage risk carefully and be prepared to adjust the strategy based on how the market evolves.
Note: Please remember to adjust this trade idea according to your individual trading conditions, including position size, broker-specific price variations, and any relevant external factors. Every trader’s situation is unique, so it’s crucial to tailor your approach to your own risk tolerance and market environment.
Trade active
Let’s manage risk by taking partial profits and moving the stop-loss to breakeven. We’ll monitor how this support level behaves. If there’s a rejection from this area, we’ll need to act accordingly. If not, we’ll let the trade run. Stay sharp and ready to adjust as needed!Trade active
Very nice drop! We’re halfway to the take-profit (TP). Let’s continue to follow the plan and manage the trade accordingly. Congratulations to those who took it! Enjoy the rest of your trading day!Trade closed: target reached
The target for the Gold short has been reached, and I’ve closed the trade in full. Great job, everyone! Congratulations to those who took the trade and followed the plan. Well done!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.