I’m eyeing a high-probability setup on XAUUSD (Gold) based on clean price action and structure on the daily timeframe. After a strong bullish push from the recent lows around 3,120, price has formed a clear bullish engulfing structure, breaking short-term resistance levels.
The market has now entered a key supply zone (highlighted in grey), where previous price action saw sharp rejections. I’ve placed my sell limit just below 3,350, targeting a return toward the 3,120 zone, where strong demand previously stepped in. My stop-loss is placed above the recent swing high, giving this trade a favorable risk-to-reward ratio.
This trade idea is built on the expectation of a short-term correction or rejection from this supply area, aligning with market structure and historical reaction zones. I’ll be monitoring price closely for any signs of weakness like bearish candlestick confirmations within the zone.
The market has now entered a key supply zone (highlighted in grey), where previous price action saw sharp rejections. I’ve placed my sell limit just below 3,350, targeting a return toward the 3,120 zone, where strong demand previously stepped in. My stop-loss is placed above the recent swing high, giving this trade a favorable risk-to-reward ratio.
This trade idea is built on the expectation of a short-term correction or rejection from this supply area, aligning with market structure and historical reaction zones. I’ll be monitoring price closely for any signs of weakness like bearish candlestick confirmations within the zone.
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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.