1. Overall Trend: The chart shows a clear bearish structure for XAU/USD (Gold vs. US Dollar) on the 1-hour timeframe. Price is making lower lows and lower highs, suggesting strong downward momentum.
2. Key Zones:
• Support Area (Blue Zone around 2321): Price is reacting to this level with a potential bounce forming an ‘M’ structure (double bottom). This could indicate a short-term support or potential reversal area.
• Resistance Area (Pink Zone): Marked as a critical zone. The note “IF GOLD BREAKS THIS AREA WE CAN CLOSE OUR BEARISH TRADES” implies this is a key invalidation level for bearish bias.
• Target Point (Below 3190): Indicates a bearish target if price breaks the support and continues downward.
3. Trade Setup:
• It looks like a continuation short trade is being considered with the expectation that price will break the support zone.
• Good risk management is shown with a clear stop-loss area (above the pink zone) and target level.
4. Additional Thoughts:
• Watch how price reacts at the support zone. If it shows bullish momentum or fails to break strongly, the setup might become invalid.
• Confirmation with a bearish candlestick pattern at the support break could add confluence.
2. Key Zones:
• Support Area (Blue Zone around 2321): Price is reacting to this level with a potential bounce forming an ‘M’ structure (double bottom). This could indicate a short-term support or potential reversal area.
• Resistance Area (Pink Zone): Marked as a critical zone. The note “IF GOLD BREAKS THIS AREA WE CAN CLOSE OUR BEARISH TRADES” implies this is a key invalidation level for bearish bias.
• Target Point (Below 3190): Indicates a bearish target if price breaks the support and continues downward.
3. Trade Setup:
• It looks like a continuation short trade is being considered with the expectation that price will break the support zone.
• Good risk management is shown with a clear stop-loss area (above the pink zone) and target level.
4. Additional Thoughts:
• Watch how price reacts at the support zone. If it shows bullish momentum or fails to break strongly, the setup might become invalid.
• Confirmation with a bearish candlestick pattern at the support break could add confluence.
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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.
Related publications
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.