Technical analysis by eltahhannada_na about Symbol PAXG: Sell recommendation (7/2/2024)

XAUUSD Current Situation: - Gold prices are trading around the 2323.360 level - The price is facing resistance at the 38.2% Fibonacci retracement level (2326.500) and is currently below a descending trend line, indicating short-term bearish pressure. Key Levels to watch - Resistance: - 2326.500 (38.2% Fibonacci level) - 2329.000 (50.0% Fibonacci level) - 2331.500 (61.8% Fibonacci level) - 2334.000 (strong resistance zone) - Support: - 2313.475 (recent low and significant support zone) Most Likely Scenario Given the current market conditions and technical setup, the most likely scenario is continued bearish pressure with a potential retest of the support zone around 2313.475. This scenario assumes that the price will struggle to break above the 38.2% Fibonacci retracement level (2326.500) and the descending trend line. Trading Strategy Short Position (Most Likely Scenario) Entry: - Enter a short position if the price fails to break above 2326.500 (38.2% Fibonacci level) and shows signs of rejection at this level. - or, enter a short position if the price breaks below 2318.000, confirming continued bearish momentum. Stop Loss: - Place a stop loss above the 2329.000 level to manage risk, ensuring it's above the 50.0% Fibonacci retracement level. Take Profit: - First target: Around 2313.475 (support zone). - Second target: If the price breaks below 2313.475, look for further downside potential, targeting levels such as 2306.000. Long Position (less likely Scenario) Entry: - Enter a long position if the price breaks and closes above 2326.500 (38.2% Fibonacci level) and sustains above this level. Stop Loss: - Place a stop loss below 2318.000 to manage risk. Take Profit: - First target: Around 2329.000 (50.0% Fibonacci level). - Second target: Around 2331.500 (61.8% Fibonacci level) if bullish momentum continues. Summary - Most Likely Scenario: Continued bearish pressure with a potential retest of the support zone around 2313.475. - Trading Strategy: Favor short positions with entries near 2326.500 and stops above 2329.000, targeting 2313.475 and lower levels. Consider long positions only if there is a clear break above 2326.500 with sustained momentum.