Top Down Analysis
WEEKLY TIMEFRAME
So when we look at the weekly timeframe we see price action has rallied all the way to 1550 and its having a hard time to retrace all the way to 2 key potential key fib level which is around 1410-- 1400 .so we have an expectation of price to drop to about 1410 before shooting up.
DAILY TIMEFRAME
So based on our weekly, we see formation of lower high and lower low in the daily timeframe , coinciding with the weekly. giving us a good confluence for a potential drop . so when we draw our target based on our lower high and lower low. we see price is completely respecting the 61.8 % which we saw a drop but didnt reach the potential extension level around 1430.00
H4 and H1 TIMEFRAME
we completely see price consolidating at around 1476 to 1450 and when you look at the previous lower low we see break of structure and a potential retrace to about 61.8% before further drop .We see price retracing now from the previous high 61.8% and we see clear rejection on the daily and H4 so we need to see break of structure in lower timeframe plus , reversal candlestick before shorting!!
so our Gold short
target1=1465
target 2=1461
target 3=1452
NOTE
SINCE XAU/USD Is so volatility keep your risk minimum and and move your stop loss to profit.
WEEKLY TIMEFRAME
So when we look at the weekly timeframe we see price action has rallied all the way to 1550 and its having a hard time to retrace all the way to 2 key potential key fib level which is around 1410-- 1400 .so we have an expectation of price to drop to about 1410 before shooting up.
DAILY TIMEFRAME
So based on our weekly, we see formation of lower high and lower low in the daily timeframe , coinciding with the weekly. giving us a good confluence for a potential drop . so when we draw our target based on our lower high and lower low. we see price is completely respecting the 61.8 % which we saw a drop but didnt reach the potential extension level around 1430.00
H4 and H1 TIMEFRAME
we completely see price consolidating at around 1476 to 1450 and when you look at the previous lower low we see break of structure and a potential retrace to about 61.8% before further drop .We see price retracing now from the previous high 61.8% and we see clear rejection on the daily and H4 so we need to see break of structure in lower timeframe plus , reversal candlestick before shorting!!
so our Gold short
target1=1465
target 2=1461
target 3=1452
NOTE
SINCE XAU/USD Is so volatility keep your risk minimum and and move your stop loss to profit.
Related Ideas
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ShinForex1
about XAUUSD