XAU/USD (Gold) In-Depth Technical Analysis with Short Position

In this idea I will explain why I am bearish on gold and why you should be too. I will use technical analysis to describe what's happened recently and what we can expect for gold moving forward.

Hi everyone, Trading-Guru here with another update on XAU/USD (Gold) . Since the markets didn't move much recently, I decided to take some time working on the bigger projects I still have in the pipeline.

I am going to publish some really high quality trading guides completely for free and have started a redesign of my website. Follow me here on Tradingview or on the scanner pages on Telegram and keep an eye on my profile to learn where and how to access these!

Recently, the resistance zone around ~$1745 has been playing an incredibly important role for gold. We have found 5 (!) confirmations of this zone, and it looks like it will take a while to find enough bulls to break through this level.

Don't forget this is the last zone of resistance before we reach a one-year-high, an incredibly powerful resistance area.

With all of this resistance present on the chart, I suggest a short set-up here on Gold. The resistance zone got confirmed again, and the price is still relatively high. This gives us a good risk return on a short position while having the confirmation already in the pocket.

Now, for a logical position to leave this trade, I suggest this weaker support zone around $1700. First of all, there is the psychological emphasis on this level where if it breaks below, news articles will be written about how gold breaks below $1700.

Second of all, since so much is happening in the world, I suggest trading shorter trades and don't plan too far ahead TA wise, as so many things can change from a fundamental point of view.

Using the support of $1670 would allow for a much higher return on this trade, but I simply don't think we have the time to wait for this level as too much can happen in the meantime. I suggest you also take this safer trade with a smaller return, but a higher chance of monetizing this return.

Follow me for consistent high quality updates, with clear explanations and charts.
Please like this post to support me.

- Trading Guru

--------------------------------------------------------------
Disclaimer!
This post does not provide financial advice. It is for educational purposes only!