Trade Idea: XAUUSD Short (SELL STOP)
Technical Analysis:
1. Daily Chart:
• RSI at 76.04 is in the overbought territory, indicating a potential reversal.
• MACD shows bullish momentum but is at a high level, suggesting a possible pullback.
• The price has reached a key resistance area around 2905.74 after a strong bullish run.
2. 15-Min Chart:
• RSI at 60.94 is approaching overbought conditions.
• MACD shows weakening bullish momentum, hinting at a potential reversal.
• Price has made a lower high compared to the previous peak, indicating bearish divergence.
3. 3-Min Chart:
• RSI is neutral but showing signs of divergence.
• MACD is flattening, suggesting momentum is fading.
• Price action shows a failure to break above the recent high.
Fundamental Analysis:
• Gold is at a historically high level, increasing the probability of profit-taking and a corrective pullback.
• Recent bullish momentum may face resistance due to overbought technical indicators.
• There are no significant fundamental drivers supporting a continued rally at this resistance zone.
Trade Details:
• Entry: 2905.00 (Near the resistance level, anticipating a reversal)
• Stop Loss (SL): 2915.00 (Above the recent high, to avoid false breakouts)
• Take Profit (TP): 2885.00 (Key support area and maintaining a 2:1 RRR)
Reasoning:
• The overbought RSI on the Daily and 15-min charts suggests limited upside potential.
• The resistance at 2905.74 aligns with historical levels, increasing the likelihood of a reversal.
• Bearish divergence and fading momentum support a short position with a favorable risk-reward setup.
XAUUSD
1. Daily Chart:
• RSI at 76.04 is in the overbought territory, indicating a potential reversal.
• MACD shows bullish momentum but is at a high level, suggesting a possible pullback.
• The price has reached a key resistance area around 2905.74 after a strong bullish run.
2. 15-Min Chart:
• RSI at 60.94 is approaching overbought conditions.
• MACD shows weakening bullish momentum, hinting at a potential reversal.
• Price has made a lower high compared to the previous peak, indicating bearish divergence.
3. 3-Min Chart:
• RSI is neutral but showing signs of divergence.
• MACD is flattening, suggesting momentum is fading.
• Price action shows a failure to break above the recent high.
Fundamental Analysis:
• Gold is at a historically high level, increasing the probability of profit-taking and a corrective pullback.
• Recent bullish momentum may face resistance due to overbought technical indicators.
• There are no significant fundamental drivers supporting a continued rally at this resistance zone.
Trade Details:
• Entry: 2905.00 (Near the resistance level, anticipating a reversal)
• Stop Loss (SL): 2915.00 (Above the recent high, to avoid false breakouts)
• Take Profit (TP): 2885.00 (Key support area and maintaining a 2:1 RRR)
Reasoning:
• The overbought RSI on the Daily and 15-min charts suggests limited upside potential.
• The resistance at 2905.74 aligns with historical levels, increasing the likelihood of a reversal.
• Bearish divergence and fading momentum support a short position with a favorable risk-reward setup.
XAUUSD Note
TRADE IS CONSIDERED INVALID IF SL IS TRIGGERED BEFORE ENTRY 
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.