We have approached a very critical zone for gold that has proven to be the major deciding factor between 2k and back to 17xx and lower for the last 3 years. Supply Zone 1 and 2 are the only zones between higher 19xx and 2xxx price levels that have the potential to bounce the price back to resume the bearish trend. If they fail to bounce the price, we are very likely to see XAUUSD raging towards ATH. If you are looking for short positions, please consider the following trade plan:
1- Only go short if you spot a strong red daily candle rejection from one of the two supply zones
2- Stop loss should be above the supply zone from which the price gets rejected
3- First Rejection target will be the one around the range 1786-1807, we will talk about further targets when we reach here
4- If both zones get breached, there is no technical reason for Gold to not see all time high again, perhaps make a new ATH. Therefore, if that happens look for long positions only.
5- I did not mention minor levels between supply zones and the target zone, but if you want to pyramid positions you may consider the following levels to add short positions to your already active short positions: 1857, 1844, 1824
1- Only go short if you spot a strong red daily candle rejection from one of the two supply zones
2- Stop loss should be above the supply zone from which the price gets rejected
3- First Rejection target will be the one around the range 1786-1807, we will talk about further targets when we reach here
4- If both zones get breached, there is no technical reason for Gold to not see all time high again, perhaps make a new ATH. Therefore, if that happens look for long positions only.
5- I did not mention minor levels between supply zones and the target zone, but if you want to pyramid positions you may consider the following levels to add short positions to your already active short positions: 1857, 1844, 1824
