This is a 1-hour candlestick chart of Gold vs. US Dollar (XAU/USD), with a core bearish trading bias. Let’s break it down:
1. Key Price Levels & Moving Averages
Current Price: ~4,535.975
Resistance Zone: 4,530.877 ~ 4,570.627 (marked as “Resistance still valid”), a critical supply zone.
Support Level: 4,353.088 ~ 4,355.603 (lower red dashed line), labeled as “Support as selling plan target” — the bearish target.
EMA System:
EMA(5): 4,522.271 (blue line)
EMA(13): 4,502.240 (red line)
Price is currently above both EMAs, showing short-term strength, but trapped under resistance.
2. Price Structure & Trading Logic
Recent Price Action:
Last Friday printed an ABC corrective wave (marked “ABC WAVE ON last Fri”), followed by a rebound.
Price is now in sideways consolidation during the early London session (LD) (marked “Sideways price action in Early LD session, waiting for a signal by the resistance zone”).
Bearish Trading Plan:
Wait for a bearish rejection signal (e.g., long upper wick, bearish candlestick pattern, RSI bearish divergence) at the resistance zone (4,530–4,570) to enter a short position.
Target the lower support zone at 4,353–4,355.
Place a stop loss above the resistance zone (e.g., above 4,575) to manage risk.
3. RSI Indicator
RSI(14) is at ~62.03, in a strong territory (above 50) but not yet overbought (>70).
A bearish turn in RSI, alongside price rejection at resistance, will confirm the bearish signal.
4. Overall Market Bias
The chart’s core strategy is “sell the resistance”:
Short-term sideways action is a consolidation phase; watch closely for a breakout or rejection at resistance.
If price breaks above 4,570, the bearish thesis is invalidated, requiring a trend reassessment.
Good Luck!
LESS IS MORE!