Gold (XAU/USD) Short Opportunity - 1:10 or 1:5 Risk to Reward.
Hi Traders,
Above we have my idea around gold and the possibilities of a short opportunity.
We have seen gold trading above it's equilibrium, having followed the DXY and in what is considered a low demand period.
We have a possible rising wedge pattern forming as well as a strong order block shown by the increase in volume on the right hand side.
We are also trading higher but making a lower pivot on RSI showing a possible divergence on the 4H chart which is known to be a strong indicator of a possible reversal, especially on this higher timeframe.
COT showed majority retail traders short from 40-45, with this liquidity grab we could now see the bias of Commercial Traders swing to short from this key level.
This level is also testing the trendline on the daily chart:
I have shown my thoughts around a 1:10 and 1:5 risk to reward.
Risking 1% for a 10% or 5% reward / 10% for 100% or 50%.
Key Fundamental Drivers:
Rates - Wednesday 26th Jan @ 19h00 GMT
Fed Press Conference - Wednesday 26th Jan @ 19h30 GMT
GDP - Thursday 27th Jan @ 13h30 GMT
Let me know your thoughts and give us a like!
Above we have my idea around gold and the possibilities of a short opportunity.
We have seen gold trading above it's equilibrium, having followed the DXY and in what is considered a low demand period.
We have a possible rising wedge pattern forming as well as a strong order block shown by the increase in volume on the right hand side.
We are also trading higher but making a lower pivot on RSI showing a possible divergence on the 4H chart which is known to be a strong indicator of a possible reversal, especially on this higher timeframe.
COT showed majority retail traders short from 40-45, with this liquidity grab we could now see the bias of Commercial Traders swing to short from this key level.
This level is also testing the trendline on the daily chart:
I have shown my thoughts around a 1:10 and 1:5 risk to reward.
Risking 1% for a 10% or 5% reward / 10% for 100% or 50%.
Key Fundamental Drivers:
Rates - Wednesday 26th Jan @ 19h00 GMT
Fed Press Conference - Wednesday 26th Jan @ 19h30 GMT
GDP - Thursday 27th Jan @ 13h30 GMT
Let me know your thoughts and give us a like!