Alan Solarsh reviews XAUUSD demand and supply zones, spotting a broken green zone that flipped to supply. He expects more downside before U.S. jobless claims data and warns traders to cut lot sizes, avoid dollar-cost averaging on buys until the second 4-hour candle closes above the 8-period EMA.
All right, so before the day gets away with us, let's just see what's on the charts. So I was expecting price to definitely come more down into this demand zone here, but I can see here that it's like just above that demand zone. So if we zoom out, I'll do that just now, we'll see where that demand zone starts to make sure that it's drawn correctly. Then I've drawn in the supply zone over here, and then I've also drawn in my supply zone over here, which is where this demand zone— sorry, at supply zone, I apologize. So I've drawn in the supply zone here where this green demand zone has been broken. Okay. So we can also see that there is a possible pennant forming. So it may go a little bit sideways chop like that, and we may get more of a pennant like that. Okay, if that happens, let me redraw it. If that happens, we can expect further bearish pressure to happen. I'm going to scroll back and see if I've drawn these demand zones correctly. Okay, yes, I have. So this one over here can be— can come all the way down into this area here because it's part of the wick. But then the demand zone is like huge comparatively to the other demand zones, and usually the demand zones are the same size. So that's why I haven't done that. I see there's a problem with this demand zone there, so we'll draw that better and take it back. Okay, that one's not really important, it's way back. All right, so that's the story. That's what I'm seeing this morning. Um, what am I expecting? I'm expecting more bearish pressure. That's what I'm expecting. So we'll just have to wait and see what happens on Thursday with jobless claims, and we just need to be patient now. Weird times. So risk off. If you're trading, I would change your lots definitely down to a lower risk. If you're on MM on the robot, possibly change it to manual lots and a lower lot, especially if you're on a 0.01 risk and your lots are bigger than a 0.01, then change over to a manual lot and then make your lot sizes a lot less. You shouldn't really be dollar cost averaging now with buy trades because the second candle is still below the 8 EMA, and we will only place dollar cost average trades when the second candle opens above the 8 EMA on a 4-hour chart. So that's what's happening, that's what I'm seeing, and I'll see you on the groups. Cheers.
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