GOLD TRAP AND ANALYSIS NOV 8TH 2024

Analysis Update on Gold (XAUUSD)

Currently, gold is exhibiting a bearish scenario overall. Price recently rejected an order block and has been forming a series of lower lows and lower highs. The last significant low was broken, and price is now at another order block. Should we observe a solid rejection from this level, it could signal a strong continuation downward with momentum toward 2666, which is the next order block below.

To confirm this bearish setup, we’ll be watching for clear rejection signs from the current order block before initiating any short positions.

Additionally, there was a notable double-bottom trap on the 5-minute timeframe. Price initially formed a double bottom, broke structure (BOS), retraced, and then made another upward move to attract retest buyers. This was followed by a sharp reversal to the previous swing low, sweeping liquidity and aggressively trapping late buyers. This manipulation setup emphasizes the importance of identifying and using these traps as an advantage in trading.

Remember, in markets like these, manipulation can look intimidating, but recognizing these patterns can turn them into fuel for strategic trades.