My Gold forecast for this week anticipates a temporary bearish move to clear the liquidity below. With the bullish pressure fading and a shift in character to the downside, there are indications of a brief bearish phase. Given the substantial liquidity below, I expect a descent towards 2032, where a 19hr demand zone is located.
Currently, my strategy involves waiting for a minor upward movement to facilitate a redistribution within my 10hr supply zone. Subsequently, I will explore selling opportunities from that point. Since this entails a counter-trend trade, I'll exercise caution and seek additional confirmation, such as a Break of Structure (BOS), to ascertain that the market is ready for a bearish trajectory.
Confluences for Gold sells are as follows:
- Price has changed character to the downside and has left unmitigated 10hr supply zone.
- Lots of liquidity to the downside in the form of trend line liquidity and Asian lows.
- Price has been moving very bullish recently and is due for a correction.
- If price wants to continue in a bullish direction I expect for price to tap into the 19hr demand.
- Price has recently reacted off a 2hr supply which initiated a downward trend.
P.S. As this is a short-term perspective, my overall outlook for this market remains bullish. I anticipate that price will continue its upward momentum, but it needs to retrace to a more favorable level before embarking on another rally. Hence, I expect a drop to reach and interact with a 19hr demand zone, serving as a potential catalyst for another bullish rally.
HAPPY NEW YEARS TO ALL OF YOU AND HOPE THIS YEAR BRING EVERYONE PROFITABILITY AND CONSISTENCY. LETS CATCH THESE PIPS!