GOLD: Short Trade Setup on Rebound from Resistance Area
Following our previous successful take profit on GOLD, where the price swiftly reached the designated resistance area, the market has experienced a rebound from that very same resistance zone. In light of this development, our current idea revolves around taking a short trade with the objective of targeting the next support level.
The price of GOLD remains within a downtrend momentum, and it is currently situated within a range-bound area characterized by periodic rebounds from resistances to supports, and vice versa. This range-bound behavior provides opportunities for traders to capitalize on price movements within the defined boundaries.
Furthermore, the Relative Strength Index (RSI) has just exited the overbought area, signaling a potential reversal or corrective move in price. Taking these factors into consideration, we have decided to initiate a short trade position today.
By leveraging the prevailing downtrend, the range-bound market structure, and the RSI signal, we aim to profit from a potential downward move towards the next support level in our short trade on GOLD.
The price of GOLD remains within a downtrend momentum, and it is currently situated within a range-bound area characterized by periodic rebounds from resistances to supports, and vice versa. This range-bound behavior provides opportunities for traders to capitalize on price movements within the defined boundaries.
Furthermore, the Relative Strength Index (RSI) has just exited the overbought area, signaling a potential reversal or corrective move in price. Taking these factors into consideration, we have decided to initiate a short trade position today.
By leveraging the prevailing downtrend, the range-bound market structure, and the RSI signal, we aim to profit from a potential downward move towards the next support level in our short trade on GOLD.
Related publications
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.