Gold Futures – Short Setup to Lock in Profits🟠 Gold Futures – Short Setup to Lock in Profits
Gold has had a strong breakout above the symmetrical triangle and has now pushed into an extended move near $3,700+. While the trend remains bullish on the higher timeframe, the current leg looks overextended, and I’m looking to hedge profits with a short setup.
🔑 Key Technicals
Pattern Breakout: Gold broke out of a long consolidation wedge and accelerated higher.
Resistance Zone: Price is testing the Fib 1.618 extension near $3,750, a potential exhaustion area.
Volume Profile: Strong demand zone sits between $3,300 – $3,360 where most volume is concentrated. A pullback could retest this area.
Risk-Reward: Setup gives ~1:3.4 RR with stop above recent highs and target into the HVN zone.
📉 Trade Idea – Protective Short
Entry: 3750
Stop Loss: 3800 (extension level).
Take Profit: $3580
⚖️ Strategy
This is not a reversal call – the larger trend is still bullish. The short setup is hedge/profit-protection only, aiming to capture a pullback after the parabolic leg.
I’ll be watching if buyers can defend $3,600 on the first dip; failure to hold could accelerate selling toward the high-volume zone.
📊 Bias
Short-term: Bearish (pullback expected)
Mid-term: Neutral to Bullish (trend intact above $3,300)
What do you think – do we see a healthy correction here, or is gold too strong to fade yet?
