XAUUSD: Navigating Key LQZ 4 HIGH-PROBABILITY short
Multi-Timeframe Analysis of XAUUSD
1. 4-Hour Chart
Key Structure:
All-Time High (ATH) at $2,600.318: This level acts as a strong resistance. Price has rejected this zone, showing an initial failure to break higher.
Corrective Channel: The price has formed a small ascending corrective channel after the ATH rejection, which often indicates a potential continuation move downwards.
Key Liquidity Zones (LQZs):
4H LQZ at $2,522.172: This zone could act as the next support if the downtrend continues.
Daily LQZ at $2,511.042: Deeper support that aligns with the broader timeframe.
Implication: Based on the corrective channel and the rejection of ATH, a continuation down towards the 4H and Daily LQZ is likely unless a strong bullish push occurs.
2. 15-Minute Chart
Bearish Momentum: The price formed a sharp drop after the ATH rejection, leading to a corrective structure forming.
Ascending Channel: A bearish ascending channel (corrective) is visible, which may suggest further downside. A clean break below the lower boundary of this channel would confirm bearish continuation.
1H LQZ at $2,542.056: This zone is likely to be the first target if the breakout occurs.
Implication: If the price breaks below the corrective channel, a potential short entry targeting the 1H LQZ is a strong play. A further drop to the 4H LQZ could follow if momentum continues.
3. 5-Minute Chart
Current Reaction:
The price is bouncing from the lower part of the small corrective structure. There is a minor bounce from the 5M LQZ at $2,562.855.
Next Step:
Monitor for price rejection or failure at the 5M LQZ. If it fails to sustain this level, a short opportunity arises.
Implication: A break below the 5-minute structure could lead to a fast move down toward the 1H LQZ. Watch for strong rejections at this level.
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Trade Setup Suggestion:
1. Entry:
Aggressive: If the price breaks the corrective channel on the 15-minute chart, you can enter short near $2,562-$2,564.
Conservative: Wait for a confirmed break and retest of the lower channel boundary.
2. Stop Loss:
Set above the corrective channel high, around $2,580, to protect against sudden bullish reversals.
3. Targets:
First target: 1H LQZ at $2,542.056.
Second target: 4H LQZ at $2,522.172.
Third target: Daily LQZ at $2,511.042 if further downside persists.
Conclusion:
The price structure and liquidity zones indicate a bearish continuation is possible, especially if the corrective channel breaks down. Keep an eye on how price interacts with the liquidity zones to refine entries and exits.
1. 4-Hour Chart
Key Structure:
All-Time High (ATH) at $2,600.318: This level acts as a strong resistance. Price has rejected this zone, showing an initial failure to break higher.
Corrective Channel: The price has formed a small ascending corrective channel after the ATH rejection, which often indicates a potential continuation move downwards.
Key Liquidity Zones (LQZs):
4H LQZ at $2,522.172: This zone could act as the next support if the downtrend continues.
Daily LQZ at $2,511.042: Deeper support that aligns with the broader timeframe.
Implication: Based on the corrective channel and the rejection of ATH, a continuation down towards the 4H and Daily LQZ is likely unless a strong bullish push occurs.
2. 15-Minute Chart
Bearish Momentum: The price formed a sharp drop after the ATH rejection, leading to a corrective structure forming.
Ascending Channel: A bearish ascending channel (corrective) is visible, which may suggest further downside. A clean break below the lower boundary of this channel would confirm bearish continuation.
1H LQZ at $2,542.056: This zone is likely to be the first target if the breakout occurs.
Implication: If the price breaks below the corrective channel, a potential short entry targeting the 1H LQZ is a strong play. A further drop to the 4H LQZ could follow if momentum continues.
3. 5-Minute Chart
Current Reaction:
The price is bouncing from the lower part of the small corrective structure. There is a minor bounce from the 5M LQZ at $2,562.855.
Next Step:
Monitor for price rejection or failure at the 5M LQZ. If it fails to sustain this level, a short opportunity arises.
Implication: A break below the 5-minute structure could lead to a fast move down toward the 1H LQZ. Watch for strong rejections at this level.
---
Trade Setup Suggestion:
1. Entry:
Aggressive: If the price breaks the corrective channel on the 15-minute chart, you can enter short near $2,562-$2,564.
Conservative: Wait for a confirmed break and retest of the lower channel boundary.
2. Stop Loss:
Set above the corrective channel high, around $2,580, to protect against sudden bullish reversals.
3. Targets:
First target: 1H LQZ at $2,542.056.
Second target: 4H LQZ at $2,522.172.
Third target: Daily LQZ at $2,511.042 if further downside persists.
Conclusion:
The price structure and liquidity zones indicate a bearish continuation is possible, especially if the corrective channel breaks down. Keep an eye on how price interacts with the liquidity zones to refine entries and exits.
Disclaimer
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