This bias is a short term plan that I can see playing out this week, which is gold dropping to lower levels to pick up liquidity in order for price to continue in its bullish trend. As price swept liquidity on the higher time frame I can see price pulling back to 1920 levels to enter the 5hr or 4hr demand zone.
Scenario (A) - Is that price will currently react off the 5hr supply zone and push price down to take out the trend lines lying below and untouched asian lows. Our designated target is 1920 where I see price making another rally to the upside.
Scenario (B) - Is that price will continue pushing higher and tap inside a 9hr supply zone which is my last POI I have for a potential sell opportunity. This is also above points of liquidity so its ideal for price to melt from there cause it will be at a much premium price. But if it reacts from there I would also be targeting the same levels as scenario (A).
Confluences for Gold shorts are as follows:
- Price tapped into a 5hr supply zone that has caused a CHOCH to the downside.
- Lots of liquidity to the downside like trend line liquidity, asian lows and there's lots of imbalances to fill.
- Liquidity on the higher time frame got swept, enough liquidity to push price down.
- Wyckoff distribution has been completed and price has reacted of current zone very well.
- For price to continue in its bullish trend, price needs a retracement in order to collect more orders for another rally to happen to the upside.
P.S. The dollar is also backing this short term bias as I expect dollar to drop we will also expect to see gold move more bullish. In addition to this, sentiment sources also have XAUUSD being VERY bullish, from this we could possibly see it reach new ATH's but we will wait and see!
Scenario (A) - Is that price will currently react off the 5hr supply zone and push price down to take out the trend lines lying below and untouched asian lows. Our designated target is 1920 where I see price making another rally to the upside.
Scenario (B) - Is that price will continue pushing higher and tap inside a 9hr supply zone which is my last POI I have for a potential sell opportunity. This is also above points of liquidity so its ideal for price to melt from there cause it will be at a much premium price. But if it reacts from there I would also be targeting the same levels as scenario (A).
Confluences for Gold shorts are as follows:
- Price tapped into a 5hr supply zone that has caused a CHOCH to the downside.
- Lots of liquidity to the downside like trend line liquidity, asian lows and there's lots of imbalances to fill.
- Liquidity on the higher time frame got swept, enough liquidity to push price down.
- Wyckoff distribution has been completed and price has reacted of current zone very well.
- For price to continue in its bullish trend, price needs a retracement in order to collect more orders for another rally to happen to the upside.
P.S. The dollar is also backing this short term bias as I expect dollar to drop we will also expect to see gold move more bullish. In addition to this, sentiment sources also have XAUUSD being VERY bullish, from this we could possibly see it reach new ATH's but we will wait and see!