XAUUSD Detailed Analysis - Long/Short Setup
Yellow zones- critical zones based on the monthly/ weekly timeframe
Red zones- critical zones based on the daily timeframe
Blue zones – critical zones based on the 4h timeframe
Orange zones – critical zones based on the 1h timeframe
According to last week’s COT Gold report we can see that it still holds the dominance in the “long” contract sizes. This is another indicator that price will reach the 1850.000 mark.
As I said a few weeks ago in my analysis, price will not only cross the 1800.000 mark, but it will go towards the 1850.000 area as well. Now we can see that happening. Yesterday price got massive support from the double confirmation point near the bottom-trendline and the 4H critical zone at 1810.000.
After the price reaches the upper trendline/monthly critical we can expect strong sell pressure to kick in. That’s why we have 2 possible scenarios:
1. Price testing the monthly critical area near 1850.000-1860.000 twice. After the second attempt, a strong correction towards the 4H critical area near the 1810.000 mark should take place.
2. Price doing a strong correction towards the 4H critical right after the first monthly critical touch near the 1850.000.
Happy Trading!
Red zones- critical zones based on the daily timeframe
Blue zones – critical zones based on the 4h timeframe
Orange zones – critical zones based on the 1h timeframe
According to last week’s COT Gold report we can see that it still holds the dominance in the “long” contract sizes. This is another indicator that price will reach the 1850.000 mark.
As I said a few weeks ago in my analysis, price will not only cross the 1800.000 mark, but it will go towards the 1850.000 area as well. Now we can see that happening. Yesterday price got massive support from the double confirmation point near the bottom-trendline and the 4H critical zone at 1810.000.
After the price reaches the upper trendline/monthly critical we can expect strong sell pressure to kick in. That’s why we have 2 possible scenarios:
1. Price testing the monthly critical area near 1850.000-1860.000 twice. After the second attempt, a strong correction towards the 4H critical area near the 1810.000 mark should take place.
2. Price doing a strong correction towards the 4H critical right after the first monthly critical touch near the 1850.000.
Happy Trading!
Trade active:
First TP reached, now we must follow if the correction will come after the second top!