XAUUSD short idea (Trend-line break)
XAUUSD has broken and rejected the long term uptrend but it is still holding structure at 1928.56-1938.53. After getting a weekly and daily close below here, watch for a break and hold/retest on the smaller timeframes. Use the downtrend channel for staying in the trade and trading the trend. Wait for a pullback into structure and into the downtrend channel, enter at the reject for the next move down. Remember the trend in is your friend, patience and confirmation is key.
Note: It’s still slightly in a range and being that it’s sitting at the bottom of the range it could easily make its way back up. Pay attention to structure on the smaller time frames.
Targets:
-1870.73, 1857.17, 1809.71, and possibly 1748.70. Look to trade bounces at the target areas.
Exit strategies:
-Break and hold back above structure at 1928.56-1938.53
-Above new down trend line w/ a CHOCH
-STOP above 1980.58
Note: It’s still slightly in a range and being that it’s sitting at the bottom of the range it could easily make its way back up. Pay attention to structure on the smaller time frames.
Targets:
-1870.73, 1857.17, 1809.71, and possibly 1748.70. Look to trade bounces at the target areas.
Exit strategies:
-Break and hold back above structure at 1928.56-1938.53
-Above new down trend line w/ a CHOCH
-STOP above 1980.58
Dennis Butler Jr.