Gold is Running Hot!
The market experienced two consecutive days of selloff following the FOMC Chairman Powell's rate announcement. This reaction is reflective of heightened uncertainty and bearish sentiment immediately after the announcement. However, today marked a shift in momentum as the price finally stabilized, signaling potential exhaustion of the selling pressure.
Buyers have stepped back into the market with conviction, pushing the price back into the buy zone. This area coincides with a prior consolidation zone, suggesting that it holds significant technical importance as a support level. The re-entry into this zone indicates renewed interest from buyers, possibly setting the stage for a rebound or further bullish momentum in the near term.
XAUUSD GOLD XAUUSD
Buyers have stepped back into the market with conviction, pushing the price back into the buy zone. This area coincides with a prior consolidation zone, suggesting that it holds significant technical importance as a support level. The re-entry into this zone indicates renewed interest from buyers, possibly setting the stage for a rebound or further bullish momentum in the near term.
XAUUSD GOLD XAUUSD Trade active
I have an open position at 2615, risking 2600, and targeting 2055 and 2075.
Note
The prior support level at 2633 is now acting as strong resistance. I will watch closely to see if prices continue to hold below the buy zone and will exit the trade.Note
On the contrary, if price pushes back into the Buy Zone. I am looking to add into the 2620 price level if it holds.
Note
Price action on the 4-hour chart doesn’t look good. There’s an absence of buyers to push the price back into the buy zone.Note
Amazingly, right after I mentioned this, buyers suddenly pushed the price back into the strong buy zone. I will only add at 2620 once the price stabilizes, supported by the buyers at that level.
Trade closed manually
I exited my trade at breakeven.Note
The reason for my exit is that the price stayed below the buy zone for too long. This does not mean I am turning bearish on Gold. Once it proves that the buyers are in control, I will revisit Gold on the long side again.
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