Hello guys, welcome to this analysis on XAU-EUR.
As you can see on the chart it appears like Gold has made a distribution pattern since April that got confirmed by a high volume markdown below 1523 last week.
The round arching formations above the 1520 level are usually an indication of weakness and distribution. This can be confirmed by the bearish divergence and series of lower highs and lower lows on the volume and cash flow indicators as well.
Currently, price is retesting the 1520 ish zone of previous support which should act as resistant now. It can be a good entry for a short trade with a target of around 1430.
This trade idea has 3 risk to reward ratio.
Good luck trading :)
As you can see on the chart it appears like Gold has made a distribution pattern since April that got confirmed by a high volume markdown below 1523 last week.
The round arching formations above the 1520 level are usually an indication of weakness and distribution. This can be confirmed by the bearish divergence and series of lower highs and lower lows on the volume and cash flow indicators as well.
Currently, price is retesting the 1520 ish zone of previous support which should act as resistant now. It can be a good entry for a short trade with a target of around 1430.
This trade idea has 3 risk to reward ratio.
Good luck trading :)
Trade closed: stop reached
Comment:
Update a few weeks after getting stopped out: trade had a very good stop-loss point. it has trended up since then.
-1R