Gold (XAUUSD)Short
Gold - Short Position Based on Downtrend & Fib retracement
Updated
The sell entry can be at the 0.318 Fibonacci retracement level at 2683 or the nearby R1 resistance level at 2686, both of which offer potential entry points in the current downtrend. The stop loss is placed at 2750, above the recent lower high (LH), to manage risk effectively. The first take profit (TP1) is set at 2622 as an initial exit point, while the second take profit (TP2) is at 2558 to capture further downside if the trend continues. The chart structure shows a downtrend with a series of lower highs (LH) and lower lows (LL), favoring short positions. This downtrend will only be invalidated if the recent LH is broken, signaling a potential reversal, which would then require a series of higher highs (HH) and higher lows (HL) to confirm a new uptrend. Monitor price action near these levels and adjust as necessary if a trend change occurs.
Trade active
TP1 has been successfully hit, and the price is continuing toward TP2, following the downtrend as expected. The Fibonacci retracement levels are aligning well with the lower highs (LH) and lower lows (LL), confirming the bearish momentum. I’ll keep monitoring for any reversal signs as the price approaches TP2, with stop loss adjusted to protect profits as it moves further down.Trade closed: target reached
TP2 has been successfully hit
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