As can be seen, supply areas are being respected. Demand zones are getting violated.
While I wait to buy at $1,000 an ounce, I am looking to also sell Gold!
The area marked out is an area where price trading took place. This is evident because of the sideways action. What makes this supply area interesting, is the strong move away from it. This indicated that, even after the trading that took place, sellers overwhelm buyers! There weren't enough buyers. They were exhausted and when supply exceeds demand, prices fall.
When prices return, I want to be selling short if and when prices return to the area with a protective stop loss above if it doesn't work out.
REWARD/RISK RATIO: 8:1