Last week, my gold analysis unfolded as expected, with both scenario (A) and scenario (B) playing out as anticipated. This week, we witnessed a robust response from the daily demand zone, which held significant bullish sentiment. However, with the market shifting and structures breaking, it appears that a downtrend is beginning.
I'm eyeing the nearby 6-hour supply zone for potential selling opportunities as price approaches. Once there, I'll be looking to initiate sells, aiming to push price down towards a demand zone where I can consider buying back up. I anticipate that this demand zone will hold, and any reactions we observe from the supply zone will likely be temporary retracements.
Confluences for GOLD Sells are as follows:
- Price has changed character to the downside and broke structure on the higher time frame.
- Left a clean 6hr supply zone which caused the BOS to the downside.
- Lots of liquidity still left to the downside as well as a 6hr demand it can mitigate.
- After gold sweeping ATH's in December it might be enough (LIQ) to begin this downtrend.
- Imbalance below that needs to get filled once that happens we can expect a bearish reaction.
P.S. It's crucial to remain adaptable, prepared for various scenarios to unfold. I also foresee the possibility of price surging upwards to fill the liquidity above the 6-hour supply zone, given the successful reaction we've seen from the daily demand thus far.
Have a great trading week ahead, The bank holiday for USD is on Monday just so you know!
I'm eyeing the nearby 6-hour supply zone for potential selling opportunities as price approaches. Once there, I'll be looking to initiate sells, aiming to push price down towards a demand zone where I can consider buying back up. I anticipate that this demand zone will hold, and any reactions we observe from the supply zone will likely be temporary retracements.
Confluences for GOLD Sells are as follows:
- Price has changed character to the downside and broke structure on the higher time frame.
- Left a clean 6hr supply zone which caused the BOS to the downside.
- Lots of liquidity still left to the downside as well as a 6hr demand it can mitigate.
- After gold sweeping ATH's in December it might be enough (LIQ) to begin this downtrend.
- Imbalance below that needs to get filled once that happens we can expect a bearish reaction.
P.S. It's crucial to remain adaptable, prepared for various scenarios to unfold. I also foresee the possibility of price surging upwards to fill the liquidity above the 6-hour supply zone, given the successful reaction we've seen from the daily demand thus far.
Have a great trading week ahead, The bank holiday for USD is on Monday just so you know!