It has been a while I have not posted a trading analysis.
Last time was back in 2019, a couple of weeks ago.
Today, I am looking at Gold (XAUUSD) and can see a supply zone that has been tested and price did not hold.
It looks like the level of 1550 represents a very solid area of resistance.
There was a bullish rejection pattern that formed this week in the form of a pin bar.
Today, there was a bit of hesitation and I am possibly looking to short Gold during tomorrow’s trading session.
One thing to be cautious is that there is a major uptrend and it will be riskier to go against the major trend.
But the supply zone is there and the price action confirmation from the Daily chart is there, too.
Tomorrow, I will be looking for a 4H confirmation and if there is such, I might go short.
I will bear in mind the major uptrend and if price action shows any signs of hesitation, I will get out of a trade.
Check out my article on Supply and Demand Levels