*Quick technical analysis of the Gold Spot price chart*
I am going to introduce a new style of blog post for those of you with little time to read my longer posts. It will also help me to provide constant valuable content when I am busy as I can spend less time on the blog and more time trading.
Let’s get in to my first “quick charts” blog post and look at the Gold spot price chart or XAU/USD as it is referred to on most broker platforms. As always, you can track this trade live via the TradingView platform by clicking on the link below.
There are a number of confluences showing me why I am interesting in shorting the price of gold on the current 1hr/4hr timeframe from a technical trading perspective. Firstly, we have the break and close through the major bullish trendline that had held since around the $1270 price region from earlier this year.
We also have price once again rejecting the $1428 intraday resistance zone with multiple wick rejections. If you are unsure about what intraday support/resistance zones are and how they work then I suggest reading my previous blog post by clicking on the link or image below.
If I am to short the gold spot price then I will look to keep my stop loss way above the current wick rejections and liquidity zone at $1428 – $1430. This will keep it out of the way of any future price spikes that may occur in this highly liquid and order filled zone.
If you look at the chart below you can see my ideal short position entry, stop loss placement at $1435 and target profit at the $1400 key price level.
I have also marked on the chart above, the lower highs and lower lows of the current trend. I am looking to capitalise on this latest lower high forming and then price pushing down to make a new lower low.
A break of the lower 1hr bullish trendline would give me greater confidence that $1400 will be achieved.
Thanks for reading this quick charts blog post and don’t forget to LIKE, SHARE and FOLLOW my blog to receive all analysis and blog posts as soon as they are live!
DISCLAIMER: None of the information posted on this site is to be considered investment/financial advice. Trading is high risk and you should only trade with money you can afford to lose.