The $2680 Question: Will Gold Correct or Continue to Fall?

11月12日

The current chart setup for Gold is decidedly bearish: we’re seeing a breakdown through key support and a local low. This is clear and hard to miss. Retail traders are diving in, buying the dip, and they’re not in a rush to close their long positions, hoping to ride it out. This sentiment is actually quite good for the bearish trend.

That said, when we zoom out and look at the bigger picture, a potential correction to around $2680 is on the radar. It might not happen, of course; I’m not a fortune teller. But it’s definitely a possibility worth considering.

Here’s the reasoning behind this potential correction scenario:

We have a solid liquidity level where buyers could be lurking, and there were compelling visual cues to establish positions there (uptrend + buying after a pullback + following a strong bullish candle). Plus, the open data backs this up (see attached screen)

So, if we do see that correction materialize, I’ll be looking to open some shorts at that level.