Kumowizard
Long

Short covering can happen above 1085-1089. Care volatility!

FX:XAUUSD   Gold/U.S. Dollar
318 2 8
Daily:
Everything looks heavy bearish , but:
- Price is extremely oversold, way too far below Kijun and Kumo, even too far below Tenkan!
- Smoothed haDelta minor positive divergence
- yesterday's stop wave price action quickly faded at 1075

4H:
- No follow through in selling, but heavy price action yesterday was enough to pull Kijun Sen down to price. Tenkan and Kijun stay flat together. A break above 1085-1089 can force massive short covering rally. SAR             already hit.
- Heikin Ashi shows hesitation. haDelta is still ard zero

If USD shows more correction, then we can see some short squeeze in gold             too.
Be very careful with position sizing! Look at how choppy and volatile it was between 24/July and 7/Aug, before it finally really started to move up! It can happen again and that would be really annoying.

So it may be a good idea to buy dips, but for the major correction to materialise and extend we should have daily Tenkan Sen lower first. Trade it in small!
"safer" play is to buy 1100/1135 Call spreads. I opened some for January and February maturities. Not too expensive imho
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Correction has started. Green Heikin Ashi candle with long upper wick.
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