Selling pressure Appearing on 78.6% Fibonacci

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This week we saw Gold Pumped and got dumped at the level of 78.6% Fibonacci level and crafting out the peak in 2011 and bottom of 2016 within the range period and price very highly respects for fibonacci retracement levels.

there are a few scenario for the gold and would like to highlight some of the things that we might be facing for clarity.

For traders that trading using price action and support & resistance levels together with fib, you might already saw what i am seeing now. the confirmation will only happen after this month closing below the fib level of 78.6%.

If it happens

1. will be seeing to trade within the inside bar of March 2020. the closing of the month will be a strong signal of the direction of the market.

2. Price breaking down march low and close will move towards 2013 - 2019 range for 2nd order flow.

3. If price fail to hold ant buy zone 1 and 2 will be seeing to reach near the 2016 low of 1040ish level for the third buy.
Note: if price breaks below, will be seeing melt down from there.

We have a possible weekly chart Wick selling when market open on Monday and with a definite risk of last week high will be a good area to place a stop loss to ride a mini trend downwards.

I am quite bullish on gold for long term but for short term this is a short call.

I hope you like my post and can support me by like follow and share my idea.

Till then.

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تم فتح الصفقة

Particually concern on this short setup, Please do not short heavily Gold even it have tendency to go down. As mention i am quite bullish on gold, this is a short term cash money trade and should watch out for capital exposure on this.

The maximum exposure will be 2% if it hits the month High. Plan your lot size properly and if you are already in the trade, square off some of your size and not to over exposure any of the good money for this trade.

Good Luck.