XAUUSD - Potential Short on the Daily
Gold is still very much in an uptrend and therefore it is possible for a further press to the upside.
We can now see that gold is forming a potential descending channel made up of lower lows and lower highs signalling a potential downside.
Technical factors to consider:
- Lower highs and lower lows
- RSI decreasing in strength
Fundamental factors to consider:
- Positive trade talks between the US and China
- Lowest unemployment rate in 50 years within the US
- Recession fears have the potential to impact this setup negatively as gold/precious metals becomes a "safe haven" for investors
Target for this setup is to catch the next wave down. If the channel is followed this should be just above the 38.20% Fibonacci retracement of around $1450. Stop loss can be placed just above the previous high on the 24th of September which was around $1537, or depending on your risk appetite.
Trade setup:
Entry @ ~$1507.50
TP @ ~$1450
SL @ ~$1538
We can now see that gold is forming a potential descending channel made up of lower lows and lower highs signalling a potential downside.
Technical factors to consider:
- Lower highs and lower lows
- RSI decreasing in strength
Fundamental factors to consider:
- Positive trade talks between the US and China
- Lowest unemployment rate in 50 years within the US
- Recession fears have the potential to impact this setup negatively as gold/precious metals becomes a "safe haven" for investors
Target for this setup is to catch the next wave down. If the channel is followed this should be just above the 38.20% Fibonacci retracement of around $1450. Stop loss can be placed just above the previous high on the 24th of September which was around $1537, or depending on your risk appetite.
Trade setup:
Entry @ ~$1507.50
TP @ ~$1450
SL @ ~$1538
Trade active:
Entered @ $1507.43
Comment:
Depending on risk appetite, the original SL can stay in place without moving it to entry as I had done in my previous update. This will allow the trade to mature and be more flexible within this setup through intraday price action and news events. I personally have decided to move my SL back to the original $1538 as this setup is valid until price breaks that level.
Patience, is key.
Depending on risk appetite, the original SL can stay in place without moving it to entry as I had done in my previous update. This will allow the trade to mature and be more flexible within this setup through intraday price action and news events. I personally have decided to move my SL back to the original $1538 as this setup is valid until price breaks that level.
Patience, is key.
Comment:
Retest confirmed.
Retest confirmed.
Comment:
Comment:
Took more partials.
Comment:
SL moved to entry.
Trade closed manually:
Closed rest at $1480.
Took partials and moved SL to entry.