HayatoDragonFX

XAUUSD, 2hr tf, sell ascending trendline bearish engulfing break

Short
OANDA:XAUUSD   Gold Spot / U.S. Dollar
Hello my friends,

For next week i am going to try selling XAUUSD .
As you can see, XAUUSD already move to the upside for 800 pips during this past 1 week.
Friday candle closed showed that there is some indecision to XAUUSD and usually when this happened, we could expect some retracement of recent impulsive movement.

In my opinion, we could expect XAUUSD to continue higher but it will need some retracement on the way to the upside as well.
If you look at the 2hr chart, 2 bearish engulfing candles appeared consecutively engulfing previous candles.
This mean sellers area pretty much in control of XAUUSD right now for a short time.

If we draw a fibonacci retracement for this recent 800 pips rally, there is a possibility price could retrace to 61.8% fibonacci level before it continue to move upwards.
Especially since the ascending trendline was broken with a bearish engulfing candle.
We could wait around 1844-45 to enter sell or use a pending sell limit order.

Sell limit XAUUSD 1844
Stop loss 1850
Take profit 1797 (7.8R)

RR ratio 1 : 7.8
Use 1-2% risk only
Good luck
Trade active: i start selling XAUUSD from 1841
stop loss 1850
Take profit 1797 (4.9R)