XAUUSD BIG SHORT!
XAUUSD
Weekly timeframe
On the weekly timeframe we can see a big push to the upside without any retracement (this is from the 18 Nov 19 to 3 Feb 2020 with no push down). Another factor that could lead to a push to the downside is the level that gold is on right now. Before in Sep 26 2011, Dec 12 2011, May, Jun, Jul, and Aug this level was well-respected support. Right now, it turned resistance and therefor this could lead to a pushdown.
We can also spot divergence and from experience, I know that divergence works a lot better on the weekly, daily and 240 min timeframes. But the divergence on the weekly can also be a huge factor and a reason to short
Daily
On the daily we could except a push to the blue area which is a structure level the pair has touched and then moved down. We can also spot divergence in this timeframe.
4 hour - Waiting for entry’s
I will probably wait for the right entry trigger. Now the market knows that everybody is ready for a short and therefor wait before shorting. We will probably see a manipulation from the market. Now if we don’t see that we can short is safely with a proper reward to risk ratio. But still, wait and look for possible entries instead of shorting it blindly.
COT reports
If we look at the COT report from 4 Feb 2020 we can clearly see that the hedge funds closed 20492 longs and opened 9794 shorts while the market was moving to the upside. Now again this is another sign + the resistance and divergence (weekly and daily timeframe). So wait for a possible entry in the 4-hour timeframe
DISCLAIMER
TRADING ON YOUR OWN RISK I AM NOT GIVING FINANCIAL ADVICE!
Weekly timeframe
On the weekly timeframe we can see a big push to the upside without any retracement (this is from the 18 Nov 19 to 3 Feb 2020 with no push down). Another factor that could lead to a push to the downside is the level that gold is on right now. Before in Sep 26 2011, Dec 12 2011, May, Jun, Jul, and Aug this level was well-respected support. Right now, it turned resistance and therefor this could lead to a pushdown.
We can also spot divergence and from experience, I know that divergence works a lot better on the weekly, daily and 240 min timeframes. But the divergence on the weekly can also be a huge factor and a reason to short
Daily
On the daily we could except a push to the blue area which is a structure level the pair has touched and then moved down. We can also spot divergence in this timeframe.
4 hour - Waiting for entry’s
I will probably wait for the right entry trigger. Now the market knows that everybody is ready for a short and therefor wait before shorting. We will probably see a manipulation from the market. Now if we don’t see that we can short is safely with a proper reward to risk ratio. But still, wait and look for possible entries instead of shorting it blindly.
COT reports
If we look at the COT report from 4 Feb 2020 we can clearly see that the hedge funds closed 20492 longs and opened 9794 shorts while the market was moving to the upside. Now again this is another sign + the resistance and divergence (weekly and daily timeframe). So wait for a possible entry in the 4-hour timeframe
DISCLAIMER
TRADING ON YOUR OWN RISK I AM NOT GIVING FINANCIAL ADVICE!
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.