Gold is currently showing clear signs of structural weakness after a strong bullish phase.
From a positioning perspective, COT data suggests that non-commercial traders are starting to reduce long exposure while increasing shorts, indicating a potential shift in sentiment. At the same time, retail traders remain heavily positioned on the long side, which typically acts as a contrarian signal.
Seasonality does not support strong upside continuation in this phase, reinforcing the idea that the market could be transitioning into a corrective or distributive environment.
Technically, price has broken its previous bullish structure and is now trading within a descending channel. The recent move lower shows strong displacement, suggesting that sellers are currently in control.
In this context, I am not interested in buying dips. Instead, I will be focused on potential pullbacks into premium areas, looking for confirmation to position short.
As long as price remains below the recent supply zone, I expect continuation toward lower liquidity levels in the coming sessions.
From a positioning perspective, COT data suggests that non-commercial traders are starting to reduce long exposure while increasing shorts, indicating a potential shift in sentiment. At the same time, retail traders remain heavily positioned on the long side, which typically acts as a contrarian signal.
Seasonality does not support strong upside continuation in this phase, reinforcing the idea that the market could be transitioning into a corrective or distributive environment.
Technically, price has broken its previous bullish structure and is now trading within a descending channel. The recent move lower shows strong displacement, suggesting that sellers are currently in control.
In this context, I am not interested in buying dips. Instead, I will be focused on potential pullbacks into premium areas, looking for confirmation to position short.
As long as price remains below the recent supply zone, I expect continuation toward lower liquidity levels in the coming sessions.
📈 Nicola | EdgeTradingJourney
Documenting my path to $1M in prop capital through real trading, discipline, and analysis.
Documenting my path to $1M in prop capital through real trading, discipline, and analysis.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
📈 Nicola | EdgeTradingJourney
Documenting my path to $1M in prop capital through real trading, discipline, and analysis.
Documenting my path to $1M in prop capital through real trading, discipline, and analysis.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.