This chart represents a 4-hour timeframe of Gold (XAU/USD) CFDs with key technical elements indicating a potential bearish move. Here’s a breakdown of the analysis:
Key Observations:
1. Uptrend Structure:
The price has been in an upward trend, forming higher highs and higher lows.
A steep ascending trendline (blue) suggests strong momentum but could indicate overextension.
2. Potential Reversal Zone (Red Box):
The red box highlights a potential resistance zone, where the price might struggle to continue upward.
The market may be forming a liquidity grab or a false breakout before a decline.
3. Bearish Indications (Blue Arrow & Red Arrows):
A breakdown below the ascending blue trendline could signal a shift in momentum.
The blue arrow suggests a bearish breakout, likely targeting lower support zones.
The red arrows confirm potential further declines.
4. Target Area (Green Box):
A large downside potential exists, with the green box indicating the estimated price drop.
Possible target levels around $2800 - $2600 if selling pressure intensifies.
Conclusion & Trading Strategy:
Bearish Bias: If the price rejects the resistance zone and breaks below the trendline, a short position could be considered.
Stop Loss: Above the resistance zone (Red Box).
Take Profit: Near the lower boundary of the green box.
Risk Factor: Wait for a clear trendline break confirmation before entering short trades.
Key Observations:
1. Uptrend Structure:
The price has been in an upward trend, forming higher highs and higher lows.
A steep ascending trendline (blue) suggests strong momentum but could indicate overextension.
2. Potential Reversal Zone (Red Box):
The red box highlights a potential resistance zone, where the price might struggle to continue upward.
The market may be forming a liquidity grab or a false breakout before a decline.
3. Bearish Indications (Blue Arrow & Red Arrows):
A breakdown below the ascending blue trendline could signal a shift in momentum.
The blue arrow suggests a bearish breakout, likely targeting lower support zones.
The red arrows confirm potential further declines.
4. Target Area (Green Box):
A large downside potential exists, with the green box indicating the estimated price drop.
Possible target levels around $2800 - $2600 if selling pressure intensifies.
Conclusion & Trading Strategy:
Bearish Bias: If the price rejects the resistance zone and breaks below the trendline, a short position could be considered.
Stop Loss: Above the resistance zone (Red Box).
Take Profit: Near the lower boundary of the green box.
Risk Factor: Wait for a clear trendline break confirmation before entering short trades.
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.