📌 Chart Overview
This is a 1-hour (H1) candlestick chart of XAU/USD (Gold to US Dollar), displaying a potential short (sell) trading setup. The price action suggests that gold is testing a strong resistance zone, and if it gets rejected, a bearish move could follow. The chart includes key technical elements like trendlines, support/resistance levels, and take-profit (TP) zones.
🛠️ Technical Breakdown
1️⃣ Uptrend and Resistance Test
Gold has been in a strong uptrend, as seen from the ascending trendline supporting price movements since March 14.
The price is currently testing a major resistance zone around the ATH (All-Time High) + Resistance Level (~$3,057-$3,072).
A rejection from this level would indicate a potential trend reversal or pullback before any further bullish continuation.
2️⃣ Sell Stop Placement – Waiting for Confirmation
Instead of entering a trade immediately, a Sell Stop order is placed below the trendline.
This means the trade will only activate if the price breaks down from the trendline support, confirming bearish momentum.
3️⃣ Target Levels (Take Profit Zones)
Once the sell trade is activated, the price is expected to move toward the following TP (Take Profit) zones:
TP 1 (~$3,045) – First minor support; price might pause or bounce briefly.
TP 2 (~$3,037-$3,040) – A stronger support zone, where profit can be partially secured.
TP 3 (~$3,029-$3,028) – The final target, aligning with a significant support level. This is the most crucial zone where price could reverse or consolidate.
4️⃣ Support Zone and Potential Bounce
The green-shaded area represents a strong support level (~$3,028-$3,030), previously tested in past price action.
If the price reaches this area, buyers might step in, potentially pushing gold back up.
📉 Trade Execution Plan
✔️ Entry: Below the trendline, activated by the Sell Stop order.
✔️ Stop Loss: Above the resistance level (~$3,072) to limit risk.
✔️ Profit Targets: TP1, TP2, and TP3 (scaling out profits).
✔️ Confirmation Factors: Rejection from resistance, trendline breakdown, and bearish momentum indicators.
🔎 Final Thoughts & Market Sentiment
If price fails to break the trendline, gold might continue its bullish run toward new highs.
If the breakdown occurs as anticipated, a strong short trade opportunity is present.
Always monitor fundamental factors (like economic data and news) that could impact gold prices.
Risk Management Tip: Use proper position sizing and a trailing stop to lock in profits if the trade moves in favor. ✅
📊 Conclusion: A well-structured short setup, with a solid risk-reward ratio and defined execution plan. Happy trading! 🚀📉
This is a 1-hour (H1) candlestick chart of XAU/USD (Gold to US Dollar), displaying a potential short (sell) trading setup. The price action suggests that gold is testing a strong resistance zone, and if it gets rejected, a bearish move could follow. The chart includes key technical elements like trendlines, support/resistance levels, and take-profit (TP) zones.
🛠️ Technical Breakdown
1️⃣ Uptrend and Resistance Test
Gold has been in a strong uptrend, as seen from the ascending trendline supporting price movements since March 14.
The price is currently testing a major resistance zone around the ATH (All-Time High) + Resistance Level (~$3,057-$3,072).
A rejection from this level would indicate a potential trend reversal or pullback before any further bullish continuation.
2️⃣ Sell Stop Placement – Waiting for Confirmation
Instead of entering a trade immediately, a Sell Stop order is placed below the trendline.
This means the trade will only activate if the price breaks down from the trendline support, confirming bearish momentum.
3️⃣ Target Levels (Take Profit Zones)
Once the sell trade is activated, the price is expected to move toward the following TP (Take Profit) zones:
TP 1 (~$3,045) – First minor support; price might pause or bounce briefly.
TP 2 (~$3,037-$3,040) – A stronger support zone, where profit can be partially secured.
TP 3 (~$3,029-$3,028) – The final target, aligning with a significant support level. This is the most crucial zone where price could reverse or consolidate.
4️⃣ Support Zone and Potential Bounce
The green-shaded area represents a strong support level (~$3,028-$3,030), previously tested in past price action.
If the price reaches this area, buyers might step in, potentially pushing gold back up.
📉 Trade Execution Plan
✔️ Entry: Below the trendline, activated by the Sell Stop order.
✔️ Stop Loss: Above the resistance level (~$3,072) to limit risk.
✔️ Profit Targets: TP1, TP2, and TP3 (scaling out profits).
✔️ Confirmation Factors: Rejection from resistance, trendline breakdown, and bearish momentum indicators.
🔎 Final Thoughts & Market Sentiment
If price fails to break the trendline, gold might continue its bullish run toward new highs.
If the breakdown occurs as anticipated, a strong short trade opportunity is present.
Always monitor fundamental factors (like economic data and news) that could impact gold prices.
Risk Management Tip: Use proper position sizing and a trailing stop to lock in profits if the trade moves in favor. ✅
📊 Conclusion: A well-structured short setup, with a solid risk-reward ratio and defined execution plan. Happy trading! 🚀📉
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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.
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.