Gold’s Next Move: Short Trade Setup Amid Key Retracement

19 nov.

Gold has retraced to the 0.5 Fibonacci level within the cloud zone, trading above the 200 Moving Average (MA) on the 30-minute timeframe. While the smaller time frame shows a bullish structure, the higher time frame remains firmly bearish. This trade capitalizes on the short-term bullish momentum within the retracement phase, keeping the broader bearish trend in mind for risk management.
Our approach is focused on capitalizing on the retracement for a short position while aligning with the overall bearish trend. If the price fails to hold key levels, a deeper bearish continuation is expected.

Technical Analysis:
• Retracement Level: Gold is at the 0.5 Fibonacci cloud level on the 30-minute chart.
• Moving Average: Currently trading above the 200MA on the lower time frame, indicating temporary bullish momentum.
• Higher Time Frame: Still bearish, reflecting a downtrend in the broader structure.
• Recent Price Action: Gold surged 1.13% above the 200MA, then retraced into the cloud, testing support for the next move.
• Trade Setup: Short-term bearish execution with targets aligned to the broader downtrend, capitalizing on the retracement level as an entry point while considering the smaller time frame’s temporary bullish momentum.

Fundamental Overview:
Gold prices rebounded in Asian trading, supported by easing US Treasury bond yields and a softer US Dollar. Geopolitical tensions between Russia and Ukraine and expectations of further stimulus measures from China provide additional support for gold. However, long-term concerns about US monetary policy and interest rate stability may weigh on the metal’s trajectory.
Traders are closely monitoring signals from Federal Reserve policymakers regarding future rate hikes. Additionally, the market is cautious about potential ripple effects from Nvidia Inc.’s earnings on the broader sentiment.

This trade takes advantage of the short-term bullish retracement on the lower time frame while staying aligned with the higher time frame’s bearish outlook. Proper risk management and vigilance toward key fundamental triggers remain essential.

Note: Please remember to adjust this trade idea according to your individual trading conditions, including position size, broker-specific price variations, and any relevant external factors. Every trader’s situation is unique, so it’s crucial to tailor your approach to your own risk tolerance and market environment.

19 nov.

Trade fermée manuellement

I have decided to close the trade at a loss as soon as it reached the 2,626 level. The geopolitical headlines dominating the space, especially concerning nuclear war threats, have made the market highly unpredictable. As seen in the news:
• “Russia warns of nuclear response due to Western missile use by Ukraine.”
• “Putin signs new nuclear doctrine amidst escalating tensions.”
Gold often reacts strongly to geopolitical uncertainties like these, and I prefer to minimize risk by cutting the trade early rather than letting it turn more negative.

In volatile scenarios like this, caution is paramount. Manage your positions wisely and prioritize risk management over speculation. Stay safe and vigilant in your trades!