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amanpaulbhogal

Shorting Gold (XAU/USD) on the daily timeframe

Short
Gold Spot / U.S. Dollar (FX:XAUUSD)  
amanpaulbhogal  
FX:XAUUSD   Gold Spot / U.S. Dollar
Support and Resistance shortsetup hightest_bar stochastic_divergence rsi_divergence trendcontinuation Parallel Channel
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supportandresistance shortsetup hightest_bar stochastic_divergence rsi_divergence trendcontinuation parallelchannel
Gold (XAU/USD) has shown repeated weakness and is once again offering a short entry. A break below and a retest of 1240 forming a high test yesterday bodes well for further price decline. The reward potential is a hefty 5:1 on the way down. Although a set up is still visible, there are, however, a few words of warning. Beware of Stochastic and RSI divergence, which if price adheres to, Gold (XAU/USD) could pull back into the moving averages and then give new short opportunities with an even lumpier reward:risk.

entry - below today's inside bar

stop - above yesterday's high test

target - 1179

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