Last week Gold bulls were fearless – we witnessed three all-time highs within a single trading week. The market closed on Friday just below 3600, locking in an impressive 1,500 pips weekly gain. There is no doubt: the trend remains firmly bullish.
But let’s add some perspective. Even if XAUUSD were to drop 1,000 pips from current levels, that move would count as a minor correction within the dominant bullish trend. That’s how extended this rally has become.
📌 Another element supporting the correction scenario is the parabolic nature of the latest move. From the 3300 zone, the rally has been almost a straight vertical line, leaving gold strongly overextended and far away from the mean. Markets rarely sustain such deviation without at least a temporary pullback.
🔑 Trading Plan: While acknowledging the risks of counter-trend setups, I will look for short opportunities. In my view, there is more room to the downside than upside in the short term.
Target for correction: 3530 confluence support zone.
As always, the trend is still bullish, but corrections are part of the game. A disciplined trader must know when to step aside – and when to take the contrarian shot. 🚀
But let’s add some perspective. Even if XAUUSD were to drop 1,000 pips from current levels, that move would count as a minor correction within the dominant bullish trend. That’s how extended this rally has become.
📌 Another element supporting the correction scenario is the parabolic nature of the latest move. From the 3300 zone, the rally has been almost a straight vertical line, leaving gold strongly overextended and far away from the mean. Markets rarely sustain such deviation without at least a temporary pullback.
🔑 Trading Plan: While acknowledging the risks of counter-trend setups, I will look for short opportunities. In my view, there is more room to the downside than upside in the short term.
Target for correction: 3530 confluence support zone.
As always, the trend is still bullish, but corrections are part of the game. A disciplined trader must know when to step aside – and when to take the contrarian shot. 🚀
Trade closed: stop reached
Stop loss reached; however, my idea is unchanged.I still believe that Gold will correct strongly.
Looking to re-enter sell on signs of weakness
📈 Forex & XAU/USD Channel:
t.me/intradaytradingsignals
💎 Crypto Channel:
t.me/FanCryptocurrency
Related publications
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.
📈 Forex & XAU/USD Channel:
t.me/intradaytradingsignals
💎 Crypto Channel:
t.me/FanCryptocurrency
Related publications
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.