XAU/USD Short Swing ABC Trade

Despite of the fact that gold might be still in bullish trend and we could face just a little pullback to the mean from 2800 USD/1oz level I am forced to share my analysis as this maybe could be start of something much bigger.

We have reached 2800 USD/1oz level which is one of important psychological levels. In my opinion we have completed wave up of the uptrend and are at the beggining of the ABC retracement, or back to the mean for a very nice swing trade.

We have reached unprecedent RSI levels on the weekly charts which we have not seen for decades. There is a very nice DOJI here also. MACD divergences on daily as same the RSI divergences are here. We closed below 1D 5SMA on Friday which is early sign that short might be the right game to play.

COT report and sentiment advantages shorts. But...this is still trade against seasonal behaviour of the shining metal.

I am sharing the leves with you. Nobody knows the amplitude of the move. This might develop to very nice swing trade and add ins during the trade. I was building up the short positions for couple of weeks and if all develops well I will be adding in on rejections of important levels with tight stop-losses.

Let´s play the game and let´s enjoy it if market let us to. :-)