TIMING THE SHORT // XAU/USD POTENTIAL SELLOFF IMINENT?
We have had an amazing week with gold, breaking highs, strong bull power, gains, who doesn't love a bullish week. Now here's the issue, gold is looking severely overbought and im not sure how much farther it will be able to go. Me personally of course i can't direct when the market will switch, but i have a feeling it is imminent because of the consolidation shown by price action today. Price was not able to get a solid move to the upside and the descending channel i have drawn shows me a potential for the actual selloff.
Currently I have a short open on gold and it was actually executed right where price is at this moment, I see were are bouncing around in a mini liquidity zone and I find taking the risk is worth it. Conversely, gold could push higher due to global tensions in the middle east, reduced interest rates with the dollar, and overall lack of confidence in the market.
Non-the-less, it is impossible for gold to continue upwards forever, there will have to be a retracement at some point, I am willing to risk it for these main confluences:
- lower lows marked by my descending channel
- lower HIGHS marked by same channel
- Over-bought per RSI on multiple timeframes
- difficulty achieving power to continue higher today
- Bullish run has gone for over a week now with minor retracements
I am taking this trade for the potential for massive gains, all we need is 1 major retracement for nice gains and we can get into another long position after the retracement takes place.
Which ever direction you fare, good luck and BOOST MY IDEA, I'm getting better everyday and I'm building a community for traders like me who want to really lock in on technical analysis and become their best form in the markets this year.
Currently I have a short open on gold and it was actually executed right where price is at this moment, I see were are bouncing around in a mini liquidity zone and I find taking the risk is worth it. Conversely, gold could push higher due to global tensions in the middle east, reduced interest rates with the dollar, and overall lack of confidence in the market.
Non-the-less, it is impossible for gold to continue upwards forever, there will have to be a retracement at some point, I am willing to risk it for these main confluences:
- lower lows marked by my descending channel
- lower HIGHS marked by same channel
- Over-bought per RSI on multiple timeframes
- difficulty achieving power to continue higher today
- Bullish run has gone for over a week now with minor retracements
I am taking this trade for the potential for massive gains, all we need is 1 major retracement for nice gains and we can get into another long position after the retracement takes place.
Which ever direction you fare, good luck and BOOST MY IDEA, I'm getting better everyday and I'm building a community for traders like me who want to really lock in on technical analysis and become their best form in the markets this year.
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