Gold Futures – Short Setup to Lock in Profits

🟠 Gold Futures – Short Setup to Lock in Profits

Gold has had a strong breakout above the symmetrical triangle and has now pushed into an extended move near $3,700+. While the trend remains bullish on the higher timeframe, the current leg looks overextended, and I’m looking to hedge profits with a short setup.

🔑 Key Technicals

• Pattern Breakout: Gold broke out of a long consolidation wedge and accelerated higher.
  
• Resistance Zone: Price is testing the Fib 1.618 extension near $3,750, a potential exhaustion area.
  
• Volume Profile: Strong demand zone sits between $3,300 – $3,360 where most volume is concentrated. A pullback could retest this area.
  
• Risk-Reward: Setup gives ~1:3.4 RR with stop above recent highs and target into the HVN zone.
  

📉 Trade Idea – Protective Short

• Entry: 3750
  
• Stop Loss: 3800 (extension level).
  
• Take Profit: $3580
  

⚖️ Strategy

This is not a reversal call – the larger trend is still bullish. The short setup is hedge/profit-protection only, aiming to capture a pullback after the parabolic leg.

I’ll be watching if buyers can defend $3,600 on the first dip; failure to hold could accelerate selling toward the high-volume zone.

📊 Bias

• Short-term: Bearish (pullback expected)
  
• Mid-term: Neutral to Bullish (trend intact above $3,300)
  

What do you think – do we see a healthy correction here, or is gold too strong to fade yet?