XAUUSD 01/09/24Coming into this week on gold, we have a clear consolidation at the last major high. This suggests there is a significant amount of liquidity built above this high. We also saw a drop towards the end of last week, indicating that a sell-off may occur in the first sessions of this week. This is based on the principle that liquidity was starting to be taken, making a sell-off at the open more likely as buyers step in. This could lead to price action moving lower before rising back into the highs, ultimately targeting the liquid highs we have marked.
Please note the two areas of liquidity below and the two areas we’ve marked. These are the points where we are watching for price action to turn bullish, but we are primarily focused on a slight pullback before going long. Also, take note that the liquid low and overall trajectory of price action have changed, so a pullback seems logical in this scenario. Aim for the high and expect a new all-time high to be formed on gold. If we break down through the lows and do not see a positive reaction, I will look to go short in the new downward trend. However, this will be short-term, as our long-term bias remains bullish. Therefore, I will be more focused on finding a long position and holding onto any shorts.
Trade your plan and always stick to your risk management.
Trade your plan and always stick to your risk.
