Gold Set to Drop From Recent Highs

This trade was planned by Marcus Delgado after observing the price of Gold moving strongly in one direction, then seeing two strong candles pushing back the other way. This alerted him that the market might be turning. After that, the price broke beyond a trendline he drew, and the following candle stayed beyond it. He placed a sell limit order at the middle of the candle that broke the trendline, so the trade will only open if the price returns to that level.

15 minutes (M15): The short-term chart shows Gold trending down with a series of candles moving lower. The moving average line is above the current price, confirming the downward direction. Recent candles pushed up but then slowed near the sell zone marking resistance, which is likely to act as a barrier. These signs support the idea that the price could turn down again.

1 hour (H1): On the hourly chart, Gold has a clear downward pattern where a trendline marks the recent decline. The price recently pushed back up with strong candles that almost crossed a resistance area but failed to break higher. This shows selling pressure at the top, reinforcing the trader's expectation of a drop after price revisits the sell zone.

4 hours (H4): The 4-hour view shows Gold moving down from recent highs, staying below its moving average which suggests the downtrend remains in place. The price bounced up slightly but is still under the defined resistance zone. Momentum looks weak on this timeframe, which aligns with placing a sell order expecting the price to continue lower.

Daily (D1): The daily chart highlights a longer-term downtrend in Gold over recent weeks, with lower highs and lower lows. The current price is below the average trend line, indicating selling dominance. The marked sell zone has acted as resistance before, so this area could cause the price to fall further if it returns.

Market conditions: Two important events related to US inflation are scheduled after this trade was set — the Producer Price Index (PPI) data and Core PPI data, both at 13:30 UTC. These high-impact reports can affect the US dollar and thus influence Gold prices, potentially increasing volatility around that time.

Risk: The trade carries the risk that the sell limit order does not trigger if the price does not come back to the chosen level. If the trade activates, the stop loss is placed beyond recent highs to limit losses if the market moves against the position. The take profit is set at a distance 1.5 times the stop loss, aiming for a larger reward if the price moves down as expected. Unexpected news or stronger buying pressure could cause the trade to close with a loss or remain unfilled.

Not financial advice.