Gold may make correction, after strong upward movement

1 set

Hello traders, I want share with you my opinion about Gold. The prolonged period of consolidation for Gold has decisively resolved to the upside, following a powerful breakout from a multi-week symmetrical wedge. This event signalled a clear shift in market control to buyers, invalidating the prior ranging environment and initiating a new, impulsive bullish phase. The price action for XAU since the breakout has been characterised by a strong, high-momentum rally that has pushed the asset to new highs. Currently, this upward movement appears to be overextended, suggesting that the market may be due for a healthy corrective pull-back. The primary working hypothesis is a short, counter-trend scenario designed to capture this anticipated correction. The expectation is that the current rally will soon find a peak, exhaust itself, and undergo a sharp decline back towards the breakout point. This corrective fall would be a natural part of a healthy uptrend, allowing the market to test the old resistance as new support. Therefore, the TP is logically placed at the 3420 level. This target is highly significant as it corresponds precisely with the current support level and the support area where the breakout originated. Please share this idea with your friends and click Boost 🚀

2 set

Trade attivo

Great! Gold turned around and now I think it will continue to fall to the support level.

7 giorni fa

Trade chiuso manualmente

Gold continue to move up, so I close this trade.