FX.co ★ Gold, XAUUSD

Good morning, fellow social investment traders. How are you today? Stay strong. Personally, I'm very excited to welcome Monday, as the market reopens and we can look for trading opportunities to maximize profits. As usual, in this journal update, I'll share my analysis of gold, commonly known as gold. My strategy remains simple: trend analysis using Moving Averages and Bollinger Bands, and MACD to determine market momentum and saturation levels. The analysis always begins with a larger timeframe, the daily, where the current downtrend remains dominant. Although the price has strengthened several times, it has failed to break above the middle Bollinger Band. This middle BB area acts as a very strong dynamic resistance, having experienced several rejections at that level. With the Bollinger Bands still trending downward and the price positioning below the 50-day Exponential Moving Average, the bearish indication remains very strong. This is further reinforced by the MACD, whose histogram has again moved below the signal line, signaling stronger selling momentum, allowing us to capitalize on the seller dominance to seek selling opportunities. In terms of price structure, it's worth noting that at 4018, there's a supply area formed by a bearish engulfing candlestick pattern. This pattern is often used as a reference by retail traders when making decisions. The reaction was already visible in this morning's price movement, where after the price touched the 4018 supply area, it gapped down to 3991. This reaction is a natural response to the supply zone and aligns with the main bearish trend. Therefore, with the combination of indicators providing directional signals, the potential for a continuation of the downward trend is very high. Looking at the H4 timeframe, we also see a supply area around 4020, which coincides with the middle Bollinger Band level. This means there are two strong lines of defense for sellers: the middle BB resistance and the supply area. Therefore, this downward rebound reaction is natural and in line with the trend. With the current momentum, my trading plan will remain focused on sell options. The ideal entry point is to wait for a correction around the 4000 level, with a stop-loss placed above the 4080 resistance level to anticipate a surge in volatility, and a profit target at the 3950 level. That concludes this journal update. See you in the next update, and I look forward to your discussion and corrections, everyone.