Short on XAU USDWe can see gold has been on a ridiculous bullish run given all the uncertainty in the market. I believe if this continues we can see further upside - however I am going out on a limb to say this weekly candle will either brush the 3090 level or close as red. I have entered short positions via market order (in the royal blue colour) and have also set limit orders for shorts all the way up to 3129 (in the lighter blue colour). This analysis can definitely be wrong but I believe the market has made 2 drastically massive moves in the last 2 days which are somewhat unwarranted (yes gold is bullish but last 2 days have hit highs of 40-50 dollar moves. Let's see what the market bring tomorrow with ADP Non-Farm Employment data and also President Trump speaking later in the evening in the US. I have mapped out important levels using the Fibonacci tool and also psychological level of 3100.
Key levels
Short entries starting from 3119
- Set another order every dollar above all the way to 3129
Stop loss
3136 is my stop loss for this trade
- If 3130 is broken with volume then I believe that we may push higher
(If this happens likely the trade will be stopped out)
Take Profit
3075 is the final TP area (0.5 Fib level using last 2 week high + low)
- Given gold is in such a bullish phase it is foolish to hold onto shorts in my opinion
(as we can see from the chart typically these bottoms are bought up and can be evidenced by the long candle wicks)
- 3090 will be where I start to scale out of this position and adjust SL levels
