Analysis & Trade Idea 💡
On the daily timeframe Gold seems to be in overall distribution from August the 10th after the market reached all-time highs. Key supply (support) and demand (resistance) zones have been highlighted in green and red respectively, it is worth noting that gold respects whole levels as points of entry for the sell as these...
💡 - Trade Idea
Looking for a retest of the 1hr Candlestick and imbalance created on the 15m, Also in Phase D of distribution so strong confluence for a sell-off.
Let me know your thoughts?
As shown on the chart, price has reached a consolidation within a consolidation. These seups yield trades with the tighest stop losses and best risk reward ratios. Entry is simple, wait for price to break and retest the low of the smaller consolidation then enter accordingly.
I'm not a fan of Head and Shoulders patterns - inverted or otherwise - but many people will have noticed the formation in the FTSE100 and will be waiting for the break down.
Whilst oversold stochastics could promote further right shoulder development, the eventual break will likely target 6400/50 as profit-taking pressure increases.
Would Victor be a seller?