CFDs on Gold (US$ / OZ)
Long

Market next move

68
Bearish Disruption Scenario:

1. False Breakout Trap:

If the price breaks above the rectangle but lacks strong volume or fails to sustain above resistance, it may turn into a bull trap.

This could lead to a sharp reversal and shake out long positions.



2. Volume Divergence:

Notice that volume is decreasing during the consolidation. Without a spike in volume on breakout, the move could lack conviction.

This weakens the bullish case.



3. Resistance Zone Overhead:

There's likely a resistance zone just above the rectangle (around 3,240–3,260), where selling pressure could resume.

Price may test the zone, reject it, and fall back inside or below the range.



4. Double Top Risk:

The price action on the 18th and current range-top could form a double-top pattern if rejected.

A drop below the lower bound of the rectangle (~3,210) would confirm the pattern, suggesting bearish continuation.



5. Macro or Fundamental Risks:

Any unexpected strong U.S. dollar movement or interest rate expectations could push gold lower, invalidating bullish technical setups.

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