Gold impressively reached my target of 1933. Next step ideas
Friday proved to be another remarkable day for Gold (
XAUUSD
). After a new daily drop of $19 from the opening, the Price Action impressively reached my target of 1933.
Honestly, I wasn't anticipating achieving my goal so swiftly. Therefore, I speculate that the end of the Friday session was indicative of a Sell-side liquidity type of price action.
It's reasonable to assume that many retail traders are now betting on further decline and are heavily positioned on the Short side of Gold.
Following such a sharp decline, Everyone obviously wants to ride the Bearish Momentum.
To illustrate that momentum, I am sharing a channel view of $OANDA:XAUUSD. The M30 chart reveals how the Daily/Monthly Low made a significant landing on the lower range of the downward channel.
The information I aim to convey is, as always, related to liquidity. I'm particularly focused on identifying the LIQUIDITY SWEEPING TRAP.
I'd like to highlight two major concerns regarding liquidity. Given the massive liquidity on the Sell side, market manipulation can be anticipated, especially at the beginning of the next week.
Firstly, at first we may experience several retracements, pullbacks, and sideways movements. In general, the Price Action might be quite volatile.
Secondly, there's a strong historical range, marked in red on the chart. 1933 is the encroachment so that explains my target. This range could potentially act as a Support zone.
Due to this significant accumulation on the Sell side, I am inclined to observe and potentially ride a substantial retracement to the Upside when the market will show a safe trading opportunity
XAUUSD
). After a new daily drop of $19 from the opening, the Price Action impressively reached my target of 1933. Honestly, I wasn't anticipating achieving my goal so swiftly. Therefore, I speculate that the end of the Friday session was indicative of a Sell-side liquidity type of price action.
It's reasonable to assume that many retail traders are now betting on further decline and are heavily positioned on the Short side of Gold.
Following such a sharp decline, Everyone obviously wants to ride the Bearish Momentum.
To illustrate that momentum, I am sharing a channel view of $OANDA:XAUUSD. The M30 chart reveals how the Daily/Monthly Low made a significant landing on the lower range of the downward channel.
The information I aim to convey is, as always, related to liquidity. I'm particularly focused on identifying the LIQUIDITY SWEEPING TRAP.
I'd like to highlight two major concerns regarding liquidity. Given the massive liquidity on the Sell side, market manipulation can be anticipated, especially at the beginning of the next week.
Firstly, at first we may experience several retracements, pullbacks, and sideways movements. In general, the Price Action might be quite volatile.
Secondly, there's a strong historical range, marked in red on the chart. 1933 is the encroachment so that explains my target. This range could potentially act as a Support zone.
Due to this significant accumulation on the Sell side, I am inclined to observe and potentially ride a substantial retracement to the Upside when the market will show a safe trading opportunity
Comment:
Gold is now as predicted above under the last Friday monthly low 1933. At this moment it's really important the Price Action to make only a Fakeout. It means to settle above this historical channel bottom price in the 1929 level.
A Sell side Liquidity is a necessary step for a reversal but a deeper decline will trigger a new downside leg.
A Sell side Liquidity is a necessary step for a reversal but a deeper decline will trigger a new downside leg.
Current resistance lays at 1942 price level.
I am looking for a new Liquidity Sweep below the Friday session Lower Low.