XAUUSD 4/8/24This week in gold, we have the potential for another sell-off through trendline liquidity, as we’ve seen before. However, all price action is trending upwards, making this our main scenario. As shown on our chart, we have a liquid high that is close to the current price, with liquidity built up below the lows.
We know that on a high timeframe, we are strongly bullish. The price tested last week’s high and then fell significantly, indicating a potential pullback before the high is taken. Key points to note include the heavy sell-off from the supply area, leaving an untapped supply zone, and creating the first sell-side imbalance during the upward trend. This suggests a chance for price to hold and potentially drop below the trendline mark. If this occurs, we will look towards the demand area shown on the chart in red. We will monitor this area to see if it pushes the price back into the higher timeframe trade alignment or fails, leading to a sell-off and a change in our bias on the given timeframe.
If the bullish trend continues, we will monitor the supply area above the current price, expecting it to fail. If it does, we may see a new all-time high for gold. Overall, the price is bullish, so a fallback would be preferable if we aim to take buys from this price section.
Watch the trendline liquidity being created below the untapped supply area and the liquid high just above it. Also, if the trendline breaks, watch the demand area to see if it goes higher within our range.
Trade safely, stick to your risk management, and follow your plan.
