POTENTIAL SELL OPPORTUNITY ON GOLD (XAUUSD)
Updated
Hey everyone! Hope you are all doing amazing! Wanted to come on here and post a potential short opportunity I see here on the commodity of Gold! So let's dive in!
OK so I have actually been waiting for prices to come up into this level of supply for some time now. Since this area was significant to me when I had seen that it failed to hold above the previous all time highs of around 2,400 per ounce before being strongly rejected to the downside with strong seller momentum...signifying this zone as a significant supply area for price. As you can see price made some sequential lower highs before now coming up to return to that significant area of supply created back in May of this year.
When you actually look at the momentum of the sellers and the buyers since price had failed to hold above all time highs and come lower you can see technically that there was a large imbalance between buyers and sellers and that the sellers have seemed much more dominant from a momentum perspective than the buyers have. Although not making the full potential "reversal" to the downside. My theory is based on basic economics 101 supply & demand...IT IS NOT THE RIGHT DEAL TO SELL YET. So I am expecting prices to react from supply and if not drop to March 2024 demand around 2,200 per ounce prices. Because there is no strong barrier until that price point! ALSO nice technical confluence is potential strong divergence forming with previous 4H highs and price coming into that supply which would be a nice price action confirmation for myself personally
OKAY GUYS! Hope you enjoyed! Please boost this post and follow my page for more highly accurate analysis! Cheers!
OK so I have actually been waiting for prices to come up into this level of supply for some time now. Since this area was significant to me when I had seen that it failed to hold above the previous all time highs of around 2,400 per ounce before being strongly rejected to the downside with strong seller momentum...signifying this zone as a significant supply area for price. As you can see price made some sequential lower highs before now coming up to return to that significant area of supply created back in May of this year.
When you actually look at the momentum of the sellers and the buyers since price had failed to hold above all time highs and come lower you can see technically that there was a large imbalance between buyers and sellers and that the sellers have seemed much more dominant from a momentum perspective than the buyers have. Although not making the full potential "reversal" to the downside. My theory is based on basic economics 101 supply & demand...IT IS NOT THE RIGHT DEAL TO SELL YET. So I am expecting prices to react from supply and if not drop to March 2024 demand around 2,200 per ounce prices. Because there is no strong barrier until that price point! ALSO nice technical confluence is potential strong divergence forming with previous 4H highs and price coming into that supply which would be a nice price action confirmation for myself personally
OKAY GUYS! Hope you enjoyed! Please boost this post and follow my page for more highly accurate analysis! Cheers!
Note
Gold took all time highs and price got snapped back down...have to see how the buyers respond now!Trade closed: stop reached
This position did hit stop loss
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