Gold Price Analysis: Bearish Breakdown with Potential Recovery
This chart is a 1-hour time frame of Gold CFDs (US/OZ)
Key Observations:
1. Current Price: The market is trading at $2,779.935, showing a -0.63% decline.
2. Resistance & Support Levels:
Resistance Zone (Green Box at the top): Around $2,795 - $2,801.
Support Zone (Green Box at the bottom): Around $2,728 - $2,740.
3. Trendlines & Patterns:
ABC Pattern: A corrective wave structure is visible:
(A) - Initial Uptrend
(B) - Continuation Higher
(C) - Market Reversal Downward
Bearish Breakdown: After reaching the peak at (C), the price broke below an upward trendline (blue).
4. Potential Price Movements (Forecasted Scenarios):
Bearish Move (Red Arrow & Box): A downward move is expected, targeting the lower support zone (~$2,740).
Bullish Recovery (Upward Arrow): If support holds, a possible recovery towards $2,795 - $2,801 could occur.
Conclusion & Trading Strategy:
Bearish Bias: If price stays below $2,784, a further decline towards $2,740 is likely.
Bullish Recovery: A strong rejection from $2,740 could push the price back up to $2,795+.
Key Levels to Watch: $2,784 (minor resistance) and $2,740 (major support).
Key Observations:
1. Current Price: The market is trading at $2,779.935, showing a -0.63% decline.
2. Resistance & Support Levels:
Resistance Zone (Green Box at the top): Around $2,795 - $2,801.
Support Zone (Green Box at the bottom): Around $2,728 - $2,740.
3. Trendlines & Patterns:
ABC Pattern: A corrective wave structure is visible:
(A) - Initial Uptrend
(B) - Continuation Higher
(C) - Market Reversal Downward
Bearish Breakdown: After reaching the peak at (C), the price broke below an upward trendline (blue).
4. Potential Price Movements (Forecasted Scenarios):
Bearish Move (Red Arrow & Box): A downward move is expected, targeting the lower support zone (~$2,740).
Bullish Recovery (Upward Arrow): If support holds, a possible recovery towards $2,795 - $2,801 could occur.
Conclusion & Trading Strategy:
Bearish Bias: If price stays below $2,784, a further decline towards $2,740 is likely.
Bullish Recovery: A strong rejection from $2,740 could push the price back up to $2,795+.
Key Levels to Watch: $2,784 (minor resistance) and $2,740 (major support).
Trade closed manually
"My analysis was only halfway complete, and the market pulled back strongly to the buy position. I advise my followers to avoid taking high risks. True professional traders are those who protect their profits, always secure their positions with break-even or stop-loss levels, and trade with discipline."
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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.
Related publications
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.