XAUUSD: In supply zone. How far to consider the next retracement?

XAUUSD: In supply zone. How far to consider the next retracement?

2024-03-28 • Dikemaskini

  • Bearish scenario: Sell below 2200 / 2194 with TP1: 2190, TP2: 2180, and TP3: 2172 with S.L. above 2204 or at least 1% of account capital*.

  • Nearest bullish scenario: Buy above 2197 with TP: 2200 and TP2: 2203, with S.L. below 2195 or at least 1% of account capital*. Apply trailing stop.

  • Bullish scenario after retracement: Consider buys around each indicated demand zone or Round Number: 2190, 2180, and 2172 with a target of 20 to 30 pips, and S.L. of at least 1% of account capital*. Apply trailing stop.

Scenario from H3 chart:

XAUUSD consolidates around 2196, Tuesday's selling zone, hence, we do not rule out a possible additional rally towards the round level 2200 and the Uncovered POC* at 2203.84 more extensively, from where to consider new sales of the pair towards the Asian buying zone at 2189.34.

With the new entry of bulls in the indicated Asian buying zone, a new rally towards 2203.84 can be expected, whose decisive breakout will expand purchases towards 2210. The RSI in positive territory confirms the bullish momentum accompanied by increasing volume.

However, the breakout of the buying zone at 2189.34 will pave the way for more extended sales towards the following weekly buying zones at 2178.48 and 2172 more extensively.

*Uncovered POC: POC = Point of Control: It is the level or zone where the highest volume concentration occurred. If there was a bearish movement from it previously, it is considered a selling zone and forms a resistance zone. On the contrary, if there was previously a bullish impulse, it is considered a buying zone, usually located at lows, thus forming support zones.

ORO H3.png

**Consider this risk management suggestion

**It is essential important that risk management is based on capital and traded volume. For this, a maximum risk of 1% of capital is recommended. It is suggested to use risk management indicators such as the Easy Order.

Disclaimer

This document does not constitute a recommendation to buy or sell financial products and should not be considered as a solicitation or offer to engage in transactions. This document is economic research by the author and is not intended to provide investment advice or solicit securities or other investment transactions at FBS. Although every investment carries some degree of risk, the risk of loss in trading foreign exchange and other leveraged assets can be substantial. Therefore, if you are considering trading in this market, you should be aware of the risks associated with this product to make informed decisions before investing. The material presented here should not be interpreted as advice or trading strategy. All prices mentioned in this report are for informational purposes only.

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