XAUUSD (GOLD) SHORT- MAJOR RESISTANCE ZONE
Price is travelling in an ascending channel marked out in the thick blue lines. We recently broke a strong support zone (GREEN RECTANGLE) and now XAUUSD on the daily chart has come back up to retest the same newly made resistance zone (GREEN RECTANGLE) and also come back up to retest the descending trend line marked out in black indicating a lot of selling/downwards pressure.
Another indication of a lot of downwards pressure approaching is the amount of times price has tried to break the resistance zone but failed, the red arrows highlight the various times it tried. There are several more confirmations that are still due to happen, there is a small black ascending trend line that needs to be broken along with the blue ascending channel that also needs to be broken before a short trade is certain. Our final confirmation is we are waiting for price to make another Lower Low by breaking the 1269-1267 region (PINK HIGHLIGHTED RECTANGLE).
We expect price to drop to the next support zone (1235-1236)
Another indication of a lot of downwards pressure approaching is the amount of times price has tried to break the resistance zone but failed, the red arrows highlight the various times it tried. There are several more confirmations that are still due to happen, there is a small black ascending trend line that needs to be broken along with the blue ascending channel that also needs to be broken before a short trade is certain. Our final confirmation is we are waiting for price to make another Lower Low by breaking the 1269-1267 region (PINK HIGHLIGHTED RECTANGLE).
We expect price to drop to the next support zone (1235-1236)
Trade closed: stop reached:
HIT SL