XAUUSD short idea, May 7th, 2018



XAUUSD is currently resting right against an important angle that is acting as resistance (the 5×1 angle). Considering the square that we are trading in, we are trading significantly above the current 45-degree angle. A violent snap back (fast selloff lower) should be expected. Additionally, we are trading in a very textbook example of a bear flag. The continued strength of the dollar should continue to drive gold lower here and another leg down is certainly a strong probability. There is little risk associated with this trade and significant possible profit.