GOLD SHORT SETUP: TARGETING $3,100 FROM OVERBOUGHT CONDITIONS

GOLD SHORT SETUP: TARGETING $3,100 FROM OVERBOUGHT CONDITIONS

Looking at the current Gold chart, we're seeing potential exhaustion signs near all-time highs. While the trend remains strongly bullish (all moving averages pointing up), several indicators suggest we may be due for a pullback to the $3,100 level.
Key Observations

Overbought RSI (77.09): The RSI is showing overbought conditions without divergence yet, but at levels where previous corrections have occurred.
Extreme Stochastic (97.99): Nearly maxed out at 98, suggesting limited upside momentum remains.
Williams %R near zero (-2.44): Showing extreme buying pressure that historically doesn't sustain.
CCI above 140: At 146.61, well into overbought territory.
Moving Average Spacing: While all MAs signal "Buy," the distance between recent EMAs (10, 20) and price indicates stretched conditions.

Risk Management
This is a counter-trend trade against strong bullish momentum, so position sizing should be conservative. The R2 pivot at $3,045 and the 10-day SMA at $3,046 should act as initial support levels and could provide clues about whether the pullback thesis is playing out.