XAUUSD Short: Targeting 3800 on a Corrective Move

[Antony Bishop]

Hello, traders! The price auction for XAUUSD has been operating within a well-defined ascending channel, confirming a strong bullish trend. This structure has guided the price higher through a series of impulsive moves and pullbacks, with buyers maintaining the initiative throughout this phase.

Currently, the auction is at a critical inflection point at the top of this channel. The price has rallied to directly test the channel's ascending supply line after a strong run-up. This is a key area where sellers are expected to emerge and challenge the prevailing bullish momentum.

My scenario for the development of events is a short-term corrective move from these highs. I expect that sellers will defend the supply line and reject the price, initiating a downward rotation back towards the channel's support. A failure to break out higher would confirm a temporary correction is underway. The take-profit is therefore set at 3800, targeting the major demand zone. Manage your risk.

[Nahid10]

Currently, the auction is at a critical inflection point at the top of this channel. The price has rallied to directly test the channel's ascending supply line after a strong run-up. This is a key area where sellers are expected to emerge and challenge the prevailing bullish momentum.