🟡 XAUUSD (Gold) – Bearish Setup in Play | H1 Wave Count + AO Divergence 🟡
🗓️ Date: June 5, 2025
📉 Timeframe: 1H
🔍 Elliott Wave Count:
The current structure appears to have completed a classic 5-wave impulse.
Wave (5) has just printed, and notably, Awesome Oscillator (AO) confirms a divergence:
Wave 3 had a higher AO peak than Wave 5, signaling bearish momentum loss.
This divergence is a strong reversal signal, often preceding a corrective move (ABC).
📊 Technical Confluence:
Price is now entering a key Supply and Demand (SND) zone between 3401 – 3414, an area that previously caused a strong rejection.
Multiple Fibonacci extensions also cluster near this level:
1.618 and 2.618 extensions align closely with current highs.
These confluences further strengthen the sell bias.
📉 Trade Idea:
🎯 Bias: Bearish
📍 Entry Zone: Around 3401 – 3414
❗ Confirmation: Look for bearish engulfing candle or breakdown from rising wedge
🎯 First Target: 3372 (Fib 0.618 retracement of wave 4–5)
🎯 Second Target: 3357 or deeper if larger correction unfolds
❌ Invalidation: Break and close above 3418
🧠 AO Divergence Reminder:
Divergence between price and oscillator like AO (lower momentum on a higher high) often signals exhaustion of trend — perfect timing for contrarian plays at strong SND zones.
📌 Summary:
Wave (5) completion with AO divergence near a significant SND zone (3414–3401) sets the stage for a high-probability short trade. Monitor lower timeframes for entry triggers.
🗓️ Date: June 5, 2025
📉 Timeframe: 1H
🔍 Elliott Wave Count:
The current structure appears to have completed a classic 5-wave impulse.
Wave (5) has just printed, and notably, Awesome Oscillator (AO) confirms a divergence:
Wave 3 had a higher AO peak than Wave 5, signaling bearish momentum loss.
This divergence is a strong reversal signal, often preceding a corrective move (ABC).
📊 Technical Confluence:
Price is now entering a key Supply and Demand (SND) zone between 3401 – 3414, an area that previously caused a strong rejection.
Multiple Fibonacci extensions also cluster near this level:
1.618 and 2.618 extensions align closely with current highs.
These confluences further strengthen the sell bias.
📉 Trade Idea:
🎯 Bias: Bearish
📍 Entry Zone: Around 3401 – 3414
❗ Confirmation: Look for bearish engulfing candle or breakdown from rising wedge
🎯 First Target: 3372 (Fib 0.618 retracement of wave 4–5)
🎯 Second Target: 3357 or deeper if larger correction unfolds
❌ Invalidation: Break and close above 3418
🧠 AO Divergence Reminder:
Divergence between price and oscillator like AO (lower momentum on a higher high) often signals exhaustion of trend — perfect timing for contrarian plays at strong SND zones.
📌 Summary:
Wave (5) completion with AO divergence near a significant SND zone (3414–3401) sets the stage for a high-probability short trade. Monitor lower timeframes for entry triggers.
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.