We had some relief in the markets from the Friday sell-off, and maybe that was due to MLK day, or basic technicals.
Today things look bad, at least from our morning analysis, for Metals and Indices and they are the first two assets that have been added to our watchlist and they both indicate sells.
Regarding this sell setup idea, we have an over all bearish trend on XAU with a breakout of a continuation occurring on Friday, and we are currently using that breakouts trendline as a resistance, of course we could pop back in and go into a buy trend, but since we trade on probabilities and trade what we see, our system is indicating a good opportunity for selling! - Hence the position was taken.
There are a few good reasons to keep the bearish view, as long as the 30% fib is not broken, they are:
- Bearish momentum, monthly, weekly - Breakout of continuation - Price rejecting, so far, our sell zone fibs - Volume indications are bearish - Wedge bearkout