Potential Short at 1733.80 Order Block
Multi Timeframe Analysis
My trading philosophy: We don’t short at the lowest of the bearish momentum nor do we long at the peak of a bullish impulse. The safest entries are at the end of a retrace in the direction of the D1 master trend.
Recommendation:
XAUUSD languished on a bearish trajectory on the monthly, weekly and daily time frames. Prior to easter, the pair did a normal retrace upwards to 38.2% , then the 50% Fibonacci level. It’s currently attempting to reach the 78.6% Fibonacci level where massive resistance awaits.
Further downside is expected the next few weeks as COT reports signify weakening gold as institutions added 12,666 shorts to the yellow metal. In total, 174k net positions are weighing bearishly.
As the daily downtrend looks forthcoming, I’m looking at short opportunities
Entry rule: 4H chart should confirm that the bullish retrace had turned bearish with MACD below zero and the price going below the 10 and 20 EMA. For good measure, check that the 4h and D1 RSI dropping below the 50 signal line
Potential Entry
I take entries at Institutional Order blocks (billions of dollars worth of orders made by hedge funds, big banks and heavy industries.). Fresh order blocks made within the last days are at:
1733.80
A sell limit at these Order Blocks will drive draw down to nil as soon as liquidity is captured by the markets on these price levels
Potential profit target at the latest daily low or in extension, the -27.2% Fibonacci level (1658)
Trade short with confidence: COT reports confirm the direction
Let me know your thoughts
My trading philosophy: We don’t short at the lowest of the bearish momentum nor do we long at the peak of a bullish impulse. The safest entries are at the end of a retrace in the direction of the D1 master trend.
Recommendation:
XAUUSD languished on a bearish trajectory on the monthly, weekly and daily time frames. Prior to easter, the pair did a normal retrace upwards to 38.2% , then the 50% Fibonacci level. It’s currently attempting to reach the 78.6% Fibonacci level where massive resistance awaits.
Further downside is expected the next few weeks as COT reports signify weakening gold as institutions added 12,666 shorts to the yellow metal. In total, 174k net positions are weighing bearishly.
As the daily downtrend looks forthcoming, I’m looking at short opportunities
Entry rule: 4H chart should confirm that the bullish retrace had turned bearish with MACD below zero and the price going below the 10 and 20 EMA. For good measure, check that the 4h and D1 RSI dropping below the 50 signal line
Potential Entry
I take entries at Institutional Order blocks (billions of dollars worth of orders made by hedge funds, big banks and heavy industries.). Fresh order blocks made within the last days are at:
1733.80
A sell limit at these Order Blocks will drive draw down to nil as soon as liquidity is captured by the markets on these price levels
Potential profit target at the latest daily low or in extension, the -27.2% Fibonacci level (1658)
Trade short with confidence: COT reports confirm the direction
Let me know your thoughts