XAUUSD. The seller is aiming for 2326 and below
On the daily time frame, a sideways movement has been forming since April 9th. The buyer’s vector 4-5 reached a new high. The key candle of vector 4-5 was on May 20th and is located at the top (highest volume, "tKC" on the chart). The seller absorbed this candle, and now the seller’s vector 5-6 is developing. The first target is 2326.515.
On the hourly time frame, there is a short trend. The last seller’s impulse started from 2374.01. The price corrected to the 50% level of the last impulse (2364.498), and we see a strong seller’s continuation.
It makes sense to look for sell opportunities above 2390 if the price returns there or from the defense of the trend by the seller.
On the hourly time frame, there is a short trend. The last seller’s impulse started from 2374.01. The price corrected to the 50% level of the last impulse (2364.498), and we see a strong seller’s continuation.
It makes sense to look for sell opportunities above 2390 if the price returns there or from the defense of the trend by the seller.
Comment:
On the daily time frame (TF), from the key candle (the one with the highest volume, marked as "tKC" on the chart) of the seller's vector 5-6, we observe a good resumption of the seller.
On the 4-hour TF, the price corrected to the 50% level of the last seller's impulse (the start of the impulse was at 2369.935). The buyer's attack on this level came with increased volume, which the seller successfully pushed down, forming a seller's zone (red rectangle on the chart). Then, the seller attacked 2325.465 but failed to break it effectively. The price formed a range. The current buyer's vector is 5-6, with a potential target of 2364.175.
It is advisable to look for buying opportunities if the price breaks out of the range upwards and defends this breakout (above 2369.935).
It is advisable to look for selling opportunities if the seller defends the levels at 2347.265, 2364.175, and 2369.935.
On the 4-hour TF, the price corrected to the 50% level of the last seller's impulse (the start of the impulse was at 2369.935). The buyer's attack on this level came with increased volume, which the seller successfully pushed down, forming a seller's zone (red rectangle on the chart). Then, the seller attacked 2325.465 but failed to break it effectively. The price formed a range. The current buyer's vector is 5-6, with a potential target of 2364.175.
It is advisable to look for buying opportunities if the price breaks out of the range upwards and defends this breakout (above 2369.935).
It is advisable to look for selling opportunities if the seller defends the levels at 2347.265, 2364.175, and 2369.935.
Comment:
In the previous post, I mentioned that it is reasonable to look for buying opportunities above 2369.935, as part of the idea of the buyer's vector 6-7 within the range on the daily timeframe (potential target 2407.34).
Take a look at how the buyer defended this level after closing the 4-hour candle above 2369.935. On the 4-hour timeframe, the price formed a range at the lower part of the daily timeframe's range. The level 2369.935 is the upper boundary of the 4-hour timeframe's range.
The buyer closed the candle above the level, and in the next 4 hours, the seller attacked the level, but the buyer defended it.
Let's look at the 5-minute timeframe to identify the pattern.
The price formed a range of 11 points right below the 2369.935 level. The 2369.645 level is the buyer's defense level for the breakout of the range on the 5-minute timeframe, which practically coincides with the upper boundary of the 4-hour timeframe's range. The seller attacked 2369.935 and 2369.645 with increased volume. The buyer absorbed the seller's attack and formed a buyer's zone (blue rectangle on the chart). Notice how the volume of the candles was distributed. You can read more about the level defense pattern here
Take a look at how the buyer defended this level after closing the 4-hour candle above 2369.935. On the 4-hour timeframe, the price formed a range at the lower part of the daily timeframe's range. The level 2369.935 is the upper boundary of the 4-hour timeframe's range.
Let's look at the 5-minute timeframe to identify the pattern.
Comment:
I am waiting for the price to interact with the lower boundary of the range on the daily timeframe at 2277.345 and observing the buyer's reaction. If the price returns to 2314 without reaching 2277, it is possible to look for selling opportunities from the seller's defense of the 2314 level.
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Good luck with your trading!
On the hourly timeframe, the last seller's impulse started from the 2336 level. Currently, there is a sideways movement above this level on the 15-minute timeframe, indicating accumulation.
For now, there is no context for purchases. Sales can be considered based on the idea of a weak buyer and the potential to reach the lower boundary of the range at 2277. However, it is important to remember that the price on the daily TF is in the lower part of the sideways movement, which is a significant area for buyers. Therefore, seeking sales here is riskier than in the upper part of the sideways movement.