In recent weeks, we've seen a strong uptrend in gold, which continues without any meaningful pullbacks.
Yes, the general rule is to trade in the direction of the dominant trend — but in this case, I’m strongly hesitant to go long while price is sitting at all-time highs.
At the moment, I would consider short positions only if signs of weakness appear — specifically, if the price starts breaking below recent local lows. As for targets, they are largely abstract, since we can’t accurately predict where a correction might stop if it does occur. Still, for reference, I’d outline three potential downside levels: 3,411, 3,404, and 3,381.
This short scenario would be invalidated if price moves above 3,490. There’s no point placing stop-losses above that level — it makes more sense to position them well below.
Keep in mind: the uptrend is very strong, and price could easily continue to rally sharply — so manage your risk accordingly.
That said, I still lean toward the idea that we may see a downside move.
Yes, the general rule is to trade in the direction of the dominant trend — but in this case, I’m strongly hesitant to go long while price is sitting at all-time highs.
At the moment, I would consider short positions only if signs of weakness appear — specifically, if the price starts breaking below recent local lows. As for targets, they are largely abstract, since we can’t accurately predict where a correction might stop if it does occur. Still, for reference, I’d outline three potential downside levels: 3,411, 3,404, and 3,381.
This short scenario would be invalidated if price moves above 3,490. There’s no point placing stop-losses above that level — it makes more sense to position them well below.
Keep in mind: the uptrend is very strong, and price could easily continue to rally sharply — so manage your risk accordingly.
That said, I still lean toward the idea that we may see a downside move.
Note
The market delivered a 50-point move with virtually no pullback and reached the first target — which, all things considered, is already a solid result.Trade closed: target reached
The setup is fully completed.
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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.