Pullback Alert: Is the Uptrend Losing Steam?
Below is a multi-timeframe breakdown of what the charts are showing (likely Daily on the left, 4H in the middle, and 1H on the right) for Gold (XAU/USD), using Bollinger Bands and Moving Averages:
1. Daily Timeframe (Left Chart)
Primary Trend: Still bullish in the bigger picture. Price is well above the longer-term moving averages (e.g., the orange line which could be the 200 MA).
Pullback Underway: Recently, price has moved off the upper Bollinger Band and is dropping toward the mid or lower band. This indicates a short-term correction within a larger uptrend.
Momentum Shift: Candles are showing more selling pressure (red/bearish candles), and if price closes below the mid-BB or a key moving average, it can confirm a deeper pullback.
2. 4H Timeframe (Middle Chart)
Short-Term Downtrend: The 4H shows a clear sequence of lower highs and lower lows compared to its previous upswing.
Below Mid-BB: Price appears to be trading at or below the mid-Bollinger Band, confirming that sellers are in control in the near term.
Moving Averages: If the shorter MAs (like the 50 or 100) have crossed down or if price is below them, it strengthens the case for a temporary downtrend on this timeframe.
3. 1H Timeframe (Right Chart)
Intraday Bearish Momentum: The 1H chart highlights the most immediate price action, and it shows continued pressure to the downside (frequent tests of lower Bollinger Band).
Lower Highs, Lower Lows: Similar to the 4H, the 1H is printing a bearish market structure.
Potential Reversal Points: Watch for any bullish candlestick patterns near support (e.g., lower BB or a significant horizontal level). Without that, the 1H remains in a downward swing.
Overall Interpretation
Daily Trend remains up in the grand scheme, but it’s undergoing a pullback/correction phase.
4H and 1H are currently bearish, showing a down-swing that could continue unless we see a clear bullish reversal signal (e.g., price reclaiming the mid-BB or forming higher highs/lows).
Key Watch Area
Whether the Daily finds support at its mid-BB or a moving average—this could spark a bounce and continuation of the bigger uptrend.
If short-term charts (4H, 1H) fail to reclaim their mid-BB/MAs, the pullback could deepen before the larger trend reasserts itself.
In short, the market is in a short-term corrective mode on lower timeframes, while the higher timeframe (Daily) remains structurally bullish as long as major supports hold.
1. Daily Timeframe (Left Chart)
Primary Trend: Still bullish in the bigger picture. Price is well above the longer-term moving averages (e.g., the orange line which could be the 200 MA).
Pullback Underway: Recently, price has moved off the upper Bollinger Band and is dropping toward the mid or lower band. This indicates a short-term correction within a larger uptrend.
Momentum Shift: Candles are showing more selling pressure (red/bearish candles), and if price closes below the mid-BB or a key moving average, it can confirm a deeper pullback.
2. 4H Timeframe (Middle Chart)
Short-Term Downtrend: The 4H shows a clear sequence of lower highs and lower lows compared to its previous upswing.
Below Mid-BB: Price appears to be trading at or below the mid-Bollinger Band, confirming that sellers are in control in the near term.
Moving Averages: If the shorter MAs (like the 50 or 100) have crossed down or if price is below them, it strengthens the case for a temporary downtrend on this timeframe.
3. 1H Timeframe (Right Chart)
Intraday Bearish Momentum: The 1H chart highlights the most immediate price action, and it shows continued pressure to the downside (frequent tests of lower Bollinger Band).
Lower Highs, Lower Lows: Similar to the 4H, the 1H is printing a bearish market structure.
Potential Reversal Points: Watch for any bullish candlestick patterns near support (e.g., lower BB or a significant horizontal level). Without that, the 1H remains in a downward swing.
Overall Interpretation
Daily Trend remains up in the grand scheme, but it’s undergoing a pullback/correction phase.
4H and 1H are currently bearish, showing a down-swing that could continue unless we see a clear bullish reversal signal (e.g., price reclaiming the mid-BB or forming higher highs/lows).
Key Watch Area
Whether the Daily finds support at its mid-BB or a moving average—this could spark a bounce and continuation of the bigger uptrend.
If short-term charts (4H, 1H) fail to reclaim their mid-BB/MAs, the pullback could deepen before the larger trend reasserts itself.
In short, the market is in a short-term corrective mode on lower timeframes, while the higher timeframe (Daily) remains structurally bullish as long as major supports hold.
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.
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.