XAUUSD: Mid-Term Swing Sell OpportunityXAUUSD: Mid-Term Swing Sell Opportunity
While Gold's (XAUUSD) larger timeframe remains bullish, the intermediate trend has turned bearish. This shift is clearly signaled by a break below previous lows and the formation of a clean Head and Shoulders reversal pattern.
Currently, price is testing a strong support confluence at a Fair Value Gap (FVG) and a Demand Zone below.
Strategy: Bounce & Sell
Our strategy is to sell into bounces (short on rallies). Key resistance levels to watch for reversal
signals include:
3300: Coincides with the Range Volatile Day High.
3325 - 3350: This is a significant Supply Zone.
We will wait for bearish candlestick patterns and reversal patterns to confirm the move down at these resistance areas.
Downside Targets
Our primary downside targets are:
3150: Aligns with the Range Volatile Week Low.
3100: If this level breaks, we'll then look towards the final support at 3000, potentially forming a Triple Zigzag (WXYXZ) corrective structure.
From a time perspective, we anticipate this bearish phase to last approximately 13 days, in line with Fibonacci Time Cycle analysis.
Crucial Considerations
Effective Money Management is paramount. Ensure your position sizing is appropriate for the expected volatility range. Always be prepared to adapt your view when the price structure clearly invalidates the current bearish setup.
Trade carefully and profitably.
C.Goii Super Trader
