Gold at Key Resistance: Short Opportunity Before Breakout?
Based on my chart, I’m analyzing XAU/USD (Gold) on the multi-timeframe, with key levels and trendlines marked. Here’s a potential trade idea derived from this technical setup:
Trade Idea:
• What: Short sell (SELL) Gold (XAU/USD) around 2,734–2,735 zone.
• Why:
• Price Action Resistance: The price is nearing a strong resistance area around 2,735–. 2,740, indicated by the horizontal orange and red lines. These levels have acted as significant selling zones in the past, which could cause a reversal.
• MSS (Market Structure Shift): There’s a shift in the market structure (MSS) slightly below, indicating a possible breakdown of bullish momentum after the recent uptrend.
• Ascending Trendline: The price is currently respecting an ascending trendline (in purple), but if it breaks this support level, it could trigger more downside.
• Fibonacci/Support Levels: The levels 2,730.46, 2,723.67, and 2,714.22 (orange and red lines) represent possible key retracement or support points where price could fall to if resistance holds.
How:
• Entry: Enter a short position near the current price of 2,734–2,735.
• Stop Loss: Place your stop-loss above the resistance at 2,741 to protect against further upward movement if price breaks above this zone.
• Take Profit: Target support zones at 2,730.46 (first target) and 2,723.67 (second target) for potential profit taking.
Risk Management:
• Ensure you manage position size to risk no more than 1–2% of your account per trade.
Trade Idea:
• What: Short sell (SELL) Gold (XAU/USD) around 2,734–2,735 zone.
• Why:
• Price Action Resistance: The price is nearing a strong resistance area around 2,735–. 2,740, indicated by the horizontal orange and red lines. These levels have acted as significant selling zones in the past, which could cause a reversal.
• MSS (Market Structure Shift): There’s a shift in the market structure (MSS) slightly below, indicating a possible breakdown of bullish momentum after the recent uptrend.
• Ascending Trendline: The price is currently respecting an ascending trendline (in purple), but if it breaks this support level, it could trigger more downside.
• Fibonacci/Support Levels: The levels 2,730.46, 2,723.67, and 2,714.22 (orange and red lines) represent possible key retracement or support points where price could fall to if resistance holds.
How:
• Entry: Enter a short position near the current price of 2,734–2,735.
• Stop Loss: Place your stop-loss above the resistance at 2,741 to protect against further upward movement if price breaks above this zone.
• Take Profit: Target support zones at 2,730.46 (first target) and 2,723.67 (second target) for potential profit taking.
Risk Management:
• Ensure you manage position size to risk no more than 1–2% of your account per trade.
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.
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.