XAUUSD 29 August 2024

Trade Idea: Short Position on XAU/USD


Entry Point:
Type: Limit Sell Order
Entry Price: $2,513 to $2,515
This level is near the recent resistance seen in the 1-hour chart and close to the Fibonacci retracement level. It also aligns with a possible reversal zone on the 1-hour chart where price may struggle to break through and could see a pullback.

Stop Loss:
Price: $2,526.00
Placed just above the recent high on the 1-hour chart. This level gives the trade enough room to breathe while limiting risk.

Take Profit Target:
Price: $2,485.00
This level is below the recent support level on the 1-hour chart and aligns with areas of previous buying interest, making it a likely area for price to reach if the trade moves in your favor.

Risk-Reward Ratio:
R/R Ratio: Approximately 2.5
With the entry at $2,515.00, stop loss at $2,526.00, and take profit at $2,485.00, the trade offers a favorable risk-reward ratio of approx 1.5.

Trailing Stop Loss:
Once the price reaches $2,495.00, adjust your stop loss to $2,505.00 to lock in profits while still giving the trade room to move.

Major Trend Direction:
The major trend on the daily chart seems to be slightly bullish, but given the recent rejection at the resistance level, a short-term pullback is expected. This trade idea aims to capitalize on that potential pullback.