My analysis revolves around the continuation of the current short-term bearish trend. To capitalise on this move, I’ll be watching for price to mitigate either the 4-hour supply zone or the 3-hour supply zone. If price instead decides to respect a nearby demand zone, I’ll shift focus and wait for a potential reaction from a 1-hour demand zone.
From there, we could see signs of accumulation followed by a bullish reaction, leading price back up into a supply zone before continuing the sell-off in line with the prevailing trend. However, if price breaks below the 1-hour demand, that would further confirm a stronger bearish bias.
Confluences for GOLD sells are as follows:
- Price has broken structure to the downside, confirming the short-term bearish trend.
- Price is approaching both the 4-hour and 3-hour supply zones, which could act as strong sell areas.
- There is a lot of downside liquidity that remains untapped and could be targeted.
- On the higher timeframes, price appears overbought due to the recent corrective move.
P.S. If price fails to respect the nearby supply zones and breaks through them, I’ll then look for a reaction from a more premium supply level. Overall, my long-term bias remains bullish based on the higher timeframes.
From there, we could see signs of accumulation followed by a bullish reaction, leading price back up into a supply zone before continuing the sell-off in line with the prevailing trend. However, if price breaks below the 1-hour demand, that would further confirm a stronger bearish bias.
Confluences for GOLD sells are as follows:
- Price has broken structure to the downside, confirming the short-term bearish trend.
- Price is approaching both the 4-hour and 3-hour supply zones, which could act as strong sell areas.
- There is a lot of downside liquidity that remains untapped and could be targeted.
- On the higher timeframes, price appears overbought due to the recent corrective move.
P.S. If price fails to respect the nearby supply zones and breaks through them, I’ll then look for a reaction from a more premium supply level. Overall, my long-term bias remains bullish based on the higher timeframes.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.