Gold (XAU/USD) Short Setup on 1-Hour Chart
Updated
Gold Short Setup – Targeting 2,480-2,470 Area Following Friday’s Selloff
After a significant selloff in Gold (XAU/USD) on Friday, we are looking to continue the bearish trend into the new week. The market has shown weakness, and we aim to capitalize on this by targeting the 2,480-2,470 area if the opportunity presents itself. If market conditions change, we will adjust our strategy accordingly.
Technical Analysis:
• Continuation of Downtrend: The recent selloff suggests strong bearish momentum, with Gold breaking through several support levels. We expect this trend to continue as the market digests Friday’s moves.
• Target Zones: The 2,480-2,470 area represents the next logical support level, where we anticipate potential profit-taking or a reversal if the market reaches this zone.
• Entry and Risk Management: Enter short positions with an initial stop-loss above the recent swing high. As the trade progresses, consider moving the stop-loss to breakeven or into profit to protect gains.
Fundamental Analysis:
• Market Sentiment: The current market sentiment is bearish for Gold, driven by a stronger USD and potential tightening monetary policy. This is likely to continue pressuring Gold prices.
• News and Events: Keep an eye on any economic data or news that might impact USD strength or Gold demand, as these could influence the trade.
This short setup leverages the ongoing bearish momentum in Gold, with a clear target in mind. As always, stay flexible and ready to adjust 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.
After a significant selloff in Gold (XAU/USD) on Friday, we are looking to continue the bearish trend into the new week. The market has shown weakness, and we aim to capitalize on this by targeting the 2,480-2,470 area if the opportunity presents itself. If market conditions change, we will adjust our strategy accordingly.
Technical Analysis:
• Continuation of Downtrend: The recent selloff suggests strong bearish momentum, with Gold breaking through several support levels. We expect this trend to continue as the market digests Friday’s moves.
• Target Zones: The 2,480-2,470 area represents the next logical support level, where we anticipate potential profit-taking or a reversal if the market reaches this zone.
• Entry and Risk Management: Enter short positions with an initial stop-loss above the recent swing high. As the trade progresses, consider moving the stop-loss to breakeven or into profit to protect gains.
Fundamental Analysis:
• Market Sentiment: The current market sentiment is bearish for Gold, driven by a stronger USD and potential tightening monetary policy. This is likely to continue pressuring Gold prices.
• News and Events: Keep an eye on any economic data or news that might impact USD strength or Gold demand, as these could influence the trade.
This short setup leverages the ongoing bearish momentum in Gold, with a clear target in mind. As always, stay flexible and ready to adjust 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
We’re still in the trade, currently hovering around our entry zone. I’ve reduced my risk by lowering the stop-loss to the recent high created. If the market reverses and turns bullish, that’s fine. Right now, we’re hovering at the Sunday open and trading within a range. Let’s see how the market develops from here.Trade closed: stop reached
The trade spiked into our stop-loss and then returned to the previous range. We managed the trade well by reducing risk significantly when the price returned to the entry point, but unfortunately, the stop-loss was triggered. Well done on managing the trade! We’ve been trading more in drawdown than profits in this range, but we always trade what’s in front of us. Let’s stay focused and disciplined for the next opportunities!
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