XAU/USD Short Tuesday 5th October - RR - 4:1
If price reaches 1776 during the asian session, look to enter into sells at this level, this is a fundamental level which bulls will want to see how gold reacts to, if gold has reached this level before the start of the NY session then you can expect financial institutions to begin entering into new gold shorts with the long term goal to reach the sell side liquidity below 1680. Use a tight stop loss at 1781.5. The target of 1760 is extremely likely if banks do indeed enter into new gold sells at this level, I would look to enter into more longer term sells at this point as well. Bear in mind we are at the top of the minor bearish structure however there is a chance for gold to rally higher to a maximum of 1820 which is the upper limit of the bearish trend we are seeing. All the fundamentals are remaining bearish for gold despite higher expectations of inflation being priced into the market. Please note that due to the recent economic climate: the oil-gas crisis, Evergrande potentially defaulting, the US debt ceiling being reached, market participants will be very responsive to news and so will the price of gold.
GreyTrades
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