Since the beginning of the week, I've been making the case that Gold's recent move has become overextended, and that complacency in the market often precedes strong reversals.
This type of overconfidence, where traders believe the uptrend will continue indefinitely, can lead to sudden and sharp corrections when sentiment shifts.
Indeed, after reaching yet another all-time high at 2758,
XAUUSD began to pull back. Once it broke below the key support level of the rising channel, the downward momentum intensified, leading to an accelerated sell-off.
This drop culminated in an intraday low of 2708—an impressive 500-pip decline from top to bottom.
Looking ahead, in my view, this correction is not over yet.
I believe we are likely to see a new wave of selling pressure in the coming sessions. The market may experience brief rebounds or retracements, but these should be seen as opportunities to position for further downside.
My strategy moving forward is to sell into this rebound, with negation if we have a new ATH. Until that happens, the primary target for this move remains the 2680-2690 support zone, which could provide a more substantial floor for the price in the near term.
This type of overconfidence, where traders believe the uptrend will continue indefinitely, can lead to sudden and sharp corrections when sentiment shifts.
Indeed, after reaching yet another all-time high at 2758,
XAUUSD began to pull back. Once it broke below the key support level of the rising channel, the downward momentum intensified, leading to an accelerated sell-off. This drop culminated in an intraday low of 2708—an impressive 500-pip decline from top to bottom.
Looking ahead, in my view, this correction is not over yet.
I believe we are likely to see a new wave of selling pressure in the coming sessions. The market may experience brief rebounds or retracements, but these should be seen as opportunities to position for further downside.
My strategy moving forward is to sell into this rebound, with negation if we have a new ATH. Until that happens, the primary target for this move remains the 2680-2690 support zone, which could provide a more substantial floor for the price in the near term.
Trade active
Gold has entered my sell zoneTrade closed manually
Closed on break-evenIt looks like is holding strong
Trade active
After the strong close on Friday, bulls are losing control once moreIf the price drops under 2720-2725 zone again, 2690 becomes very probable
📈 Forex & XAU/USD Channel:
t.me/intradaytradingsignals
💎 Crypto Channel:
t.me/FanCryptocurrency
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.
📈 Forex & XAU/USD Channel:
t.me/intradaytradingsignals
💎 Crypto Channel:
t.me/FanCryptocurrency
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.