James-LFA

Possible Gold Short opportunity

Short
FX_IDC:XAUUSD   Gold Spot / U.S. Dollar
Most of the reasoning behind this set up is explained in the picture, but we also have had 2 corrective bullish channels, and the textbook breakouts for each of those is down. For price to find resistance at the previous major high is a logical point. Also, if you check the daily we had a big bearish engulfing followed by 2 small bullish candles (the current day's is the 3rd candle), which would again suggest a bearish continuation push down.

Risk Reward for any potential short is very high.

I will not enter without seeing the appropriate confirmations with my plan.