XAUUSD - Possible Buying Trap Alert
"Let us be honest, no institute in the world ever liked or started liking retail traders."
This idea is in continuation of my previous idea about Gold (see related ideas). In the last idea I told you guys that we have to wait for the 1680 price level to break if we want to go short for a longer run. But it recently bounced exactly off 1680.
Now the thing is, that Silver is not responding to the recent bounce in accordance with Gold and neither is DXY and neither any other instruments that have a dependency on USD. This is also true that Gold is the most widely traded metal all over the world, individual traders and institutes alike. So, there arises a great possibility that some leviathans are willingly producing a buying trap with that bounce.
So what is next greater possibility?
People are very likely to go long on XAUUSD looking at that rejection on weekly and daily timeframe hoping for a possible signal on monthly as well so that they can hold till higher levels. If this is a buying trap, institutes are going to eliminate retail traders that are holding long positions from the bounce by cutting their own long positions causing gold to fall hard back to the support 1680.
What should you do as a trader?
Now, as far as gold is concerned, we have two very prominent price zones, first is the support of 1680 like I said in my previous idea and the other is marked with that red rectangle on the price chart in this idea. Do not expect a bullish reversal unless price break higher than that red triangle or your can say 1775 price level and do not hold short unless price breaks lower than 1680. Until the decision is made, we are stuck with a ranging market between the aforementioned levels.
This idea is in continuation of my previous idea about Gold (see related ideas). In the last idea I told you guys that we have to wait for the 1680 price level to break if we want to go short for a longer run. But it recently bounced exactly off 1680.
Now the thing is, that Silver is not responding to the recent bounce in accordance with Gold and neither is DXY and neither any other instruments that have a dependency on USD. This is also true that Gold is the most widely traded metal all over the world, individual traders and institutes alike. So, there arises a great possibility that some leviathans are willingly producing a buying trap with that bounce.
So what is next greater possibility?
People are very likely to go long on XAUUSD looking at that rejection on weekly and daily timeframe hoping for a possible signal on monthly as well so that they can hold till higher levels. If this is a buying trap, institutes are going to eliminate retail traders that are holding long positions from the bounce by cutting their own long positions causing gold to fall hard back to the support 1680.
What should you do as a trader?
Now, as far as gold is concerned, we have two very prominent price zones, first is the support of 1680 like I said in my previous idea and the other is marked with that red rectangle on the price chart in this idea. Do not expect a bullish reversal unless price break higher than that red triangle or your can say 1775 price level and do not hold short unless price breaks lower than 1680. Until the decision is made, we are stuck with a ranging market between the aforementioned levels.
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