GOLD SHORT SETUP: TARGETING $3,100 FROM OVERBOUGHT CONDITIONS
Looking at the current Gold chart, we're seeing potential exhaustion signs near all-time highs. While the trend remains strongly bullish (all moving averages pointing up), several indicators suggest we may be due for a pullback to the $3,100 level.
Key Observations
Overbought RSI (77.09): The RSI is showing overbought conditions without divergence yet, but at levels where previous corrections have occurred.
Extreme Stochastic (97.99): Nearly maxed out at 98, suggesting limited upside momentum remains.
Williams %R near zero (-2.44): Showing extreme buying pressure that historically doesn't sustain.
CCI above 140: At 146.61, well into overbought territory.
Moving Average Spacing: While all MAs signal "Buy," the distance between recent EMAs (10, 20) and price indicates stretched conditions.
Risk Management
This is a counter-trend trade against strong bullish momentum, so position sizing should be conservative. The R2 pivot at $3,045 and the 10-day SMA at $3,046 should act as initial support levels and could provide clues about whether the pullback thesis is playing out.
Looking at the current Gold chart, we're seeing potential exhaustion signs near all-time highs. While the trend remains strongly bullish (all moving averages pointing up), several indicators suggest we may be due for a pullback to the $3,100 level.
Key Observations
Overbought RSI (77.09): The RSI is showing overbought conditions without divergence yet, but at levels where previous corrections have occurred.
Extreme Stochastic (97.99): Nearly maxed out at 98, suggesting limited upside momentum remains.
Williams %R near zero (-2.44): Showing extreme buying pressure that historically doesn't sustain.
CCI above 140: At 146.61, well into overbought territory.
Moving Average Spacing: While all MAs signal "Buy," the distance between recent EMAs (10, 20) and price indicates stretched conditions.
Risk Management
This is a counter-trend trade against strong bullish momentum, so position sizing should be conservative. The R2 pivot at $3,045 and the 10-day SMA at $3,046 should act as initial support levels and could provide clues about whether the pullback thesis is playing out.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.