Entry 2990
Last week's price action in XAUUSD was dramatic. Initial surges, driven by tariff announcements, propelled the pair to record highs. However, this was followed by a significant correction, leaving the market in a state of uncertainty as we enter the new week.
Considering the current market context (tariff implications, upcoming US economic data, central bank commentary) and the potential for continued volatility, this swing trade idea is indeed ambitious.
The Core Strategy:
We are anticipating a further decline in XAUUSD to a major support level. The key to this trade will be observing a strong rejection at this support, indicating renewed buying pressure. The ultimate goal is to capitalize on this potential rebound and ride the momentum towards making new all-time highs.
Key Considerations for the Coming Week:
Identify the Major Support Level: Pinpointing this level is crucial. It could be a significant previous swing low, a key Fibonacci retracement level, or a strong psychological barrier. Careful technical analysis is required to determine the most probable zone.
Confirmation of Rejection: We will be looking for clear bullish price action at the identified support. This could include bullish candlestick patterns (e.g., engulfing bar, pin bar), positive divergence on momentum indicators, or a break of a short-term downtrend line.
Risk Management: Given the ambition of targeting new all-time highs after a significant correction, robust risk management is paramount. This includes setting a well-defined stop-loss order below the identified support level to protect capital in case the rejection doesn't materialize. Position sizing should also be carefully considered.
Potential Catalysts: Be aware of the upcoming economic data and central bank commentary, as these events could significantly impact price action and either support or invalidate this trade idea.
Patience is Key: This is a swing trade, and the anticipated move may take time to develop. Avoid premature entry and wait for clear confirmation of the rejection at the support level.
In essence, this is a contrarian swing trade based on the expectation that the underlying bullish drivers for gold will reassert themselves after the recent correction. We are aiming to buy low at a significant support level with the high-conviction target of reaching new all-time highs.
Disclaimer: This is a potential trade setup idea and not financial advice. Trading Forex involves significant risk, and you could lose your capital. Conduct thorough research and analysis before making any trading decisions.
Trade closed: target reached
680 pips from the swing trade , closed out , was considering reentering but with Trump latest new ill quit when ahead
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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.