This Week's GOLD Short Consideration｜Targeting a Pullback Sell from the 5th Rebound of the Blue Downward Trend Line

GOLD Trade Analysis | Classic Short Following the Higher Timeframe Downtrend

This trade was a short setup where the higher-timeframe market context and the timing on the shorter timeframe aligned cleanly.

① Assessing the environment with DAO

First, when checking the 1-hour chart of the DAO, all EMA20s on the weekly, daily, and 4-hour timeframes are pointing down.

The higher-timeframe overall shows a downtrend, so the basic strategy is to sell on rallies.

On the other hand, the 1-hour EMA20 is acting as support, so although selling pressure dominates,

the price did not fall easily.

Therefore,“Be cautious until the support is broken.”

That stance was used to observe the market.

② Confirming resistance with JCL

Next, check the 1-hour chart of JCL.

All Pink, Orange, and Blue indicate a downtrend, and the market flow is clearly downward.

What drew further attention was the Blue downward trendline.

Prices have reacted to this trendline multiple times, and this was the fifth touch.

Technically, it is a scene that is easily perceived as strong resistance.

The higher-timeframe downtrend aligns with reaching resistance.

There was a sufficiently favorable environment to aim for shorts.

③ Measuring entry timing with Astral Clouds (筋斗雲)

After finishing the environmental assessment, the actual entry is judged on the 5-minute chart of the Astral Cloud using 筋斗雲.

Price drops from resistance, and青雲 (blue cloud) is confirmed on 筋斗雲.

青雲 signals a selling-dominant stance.

Confirming that the direction matches the lower timeframe downtrend, the short entry was executed.