Multi Time Frame Analysis:
1. Monthly Chart;
• RSI: Extremely Overbought at 84.66
• Volume: Declining – signals weakening buying pressure
2. Weekly Chart;
• Historical Volume Spike
• RSI: Overbought at 78.26
3. Daily Chart;
• Price near Upper Channel Line
• R2 (3246.25): Resistance/Trend Continuation Zone
• MML +2/8 (3281.25): Extreme OverShoot zone (POI)
• R3 (3315.96): Exhaustion Zone
• Gap at 3177.260 still unfilled
• RSI: 71.24 – overbought
• Pattern: Rising Wedge
4. 4H Chart;
• RSI: Overbought
• No Valid Correction
5. 2H Chart;
• RSI: Overbought
• MACD Histogram: Fading
• MACD Lines: Near Crossover
• Volume: Declining
6. 1H Chart;
• MACD Crossover occurred, histogram below zero
• Volume: Weakening
• Price: Still rising despite momentum loss
7. 30-Min Chart;
• MACD Downtrend but price pushing up
• Histogram below zero, divergence forming
• Volume: Dropping
• Near R2 Pivot
Gold appears to be in a trend exhaustion phase. Across higher and mid-timeframes, RSI is extremely overbought, volume is consistently declining, and the MACD is losing momentum. Price is approaching a critical zone between R2 (3246.25) and MML +2/8 (3281.25)—our points of interest (POI) for potential reversal.
If 3246.25 holds, we may see a correction. However, if price breaks above this level, the final resistance could be 3315.96 (R3 Exhaustion Zone). Any signs of inducement or fake breakout could trap buyers at the top (FOMO entry).
Confirmation signals to watch:
• Reversal Candlestick Patterns: Shooting Star, Evening Star, Bearish Engulfing, or multiple Doji formations.
Final Thoughts:
Gold is currently trading at elevated levels, showing signs of exhaustion across nearly all timeframes. With the RSI reading at an extreme 84.66 on the monthly chart, and volume drying up as price continues to rise, this suggests that the market is driven more by momentum and emotion than sustainable buying pressure. The presence of an unfilled breakaway gap at 3177.26, combined with key resistance zones approaching at R2 (3246.25), MML +2/8 (3281.25), and R3 (3315.96), indicates that Gold may be entering a Fear of Missing Out (FOMO) phase, often marked by impulsive buying and the final surge before a correction. Patterns like the Rising Wedge, MACD divergence, and consistent overbought RSI across MTFs reinforce the likelihood of a potential reversal.
However, due to the nature of FOMO-driven moves, the price could still spike before reversing—this is where inducement traps often catch late buyers. It’s crucial to remain patient and wait for proper confirmation signals such as bearish candlestick formations, MACD crossovers, or strong rejection wicks at resistance levels. If price reacts at these zones without breaking through decisively, it could be an ideal setup for short opportunities. Always protect your capital with a solid risk management strategy, use clearly defined stop-loss levels (preferably just above R3), and avoid emotional trading decisions. The technicals are aligning for a significant correction—what remains is the right trigger.
🎯 Potential Targets:
• Support Zone 1: 3210.75
• Gap Fill / 26.60% Fib: 3177.26
• Support Zone 2 / 38.20% Fib: 3131.00
• Support Zone 3 / 50% Fib: 3101.50
• Support Zone 4 / 64% Fib: 3052.79
• Final Target / 78.60% Fib: 3022.52
• Demand Zone: 2961.00
1. Monthly Chart;
• RSI: Extremely Overbought at 84.66
• Volume: Declining – signals weakening buying pressure
2. Weekly Chart;
• Historical Volume Spike
• RSI: Overbought at 78.26
3. Daily Chart;
• Price near Upper Channel Line
• R2 (3246.25): Resistance/Trend Continuation Zone
• MML +2/8 (3281.25): Extreme OverShoot zone (POI)
• R3 (3315.96): Exhaustion Zone
• Gap at 3177.260 still unfilled
• RSI: 71.24 – overbought
• Pattern: Rising Wedge
4. 4H Chart;
• RSI: Overbought
• No Valid Correction
5. 2H Chart;
• RSI: Overbought
• MACD Histogram: Fading
• MACD Lines: Near Crossover
• Volume: Declining
6. 1H Chart;
• MACD Crossover occurred, histogram below zero
• Volume: Weakening
• Price: Still rising despite momentum loss
7. 30-Min Chart;
• MACD Downtrend but price pushing up
• Histogram below zero, divergence forming
• Volume: Dropping
• Near R2 Pivot
Gold appears to be in a trend exhaustion phase. Across higher and mid-timeframes, RSI is extremely overbought, volume is consistently declining, and the MACD is losing momentum. Price is approaching a critical zone between R2 (3246.25) and MML +2/8 (3281.25)—our points of interest (POI) for potential reversal.
If 3246.25 holds, we may see a correction. However, if price breaks above this level, the final resistance could be 3315.96 (R3 Exhaustion Zone). Any signs of inducement or fake breakout could trap buyers at the top (FOMO entry).
Confirmation signals to watch:
• Reversal Candlestick Patterns: Shooting Star, Evening Star, Bearish Engulfing, or multiple Doji formations.
Final Thoughts:
Gold is currently trading at elevated levels, showing signs of exhaustion across nearly all timeframes. With the RSI reading at an extreme 84.66 on the monthly chart, and volume drying up as price continues to rise, this suggests that the market is driven more by momentum and emotion than sustainable buying pressure. The presence of an unfilled breakaway gap at 3177.26, combined with key resistance zones approaching at R2 (3246.25), MML +2/8 (3281.25), and R3 (3315.96), indicates that Gold may be entering a Fear of Missing Out (FOMO) phase, often marked by impulsive buying and the final surge before a correction. Patterns like the Rising Wedge, MACD divergence, and consistent overbought RSI across MTFs reinforce the likelihood of a potential reversal.
However, due to the nature of FOMO-driven moves, the price could still spike before reversing—this is where inducement traps often catch late buyers. It’s crucial to remain patient and wait for proper confirmation signals such as bearish candlestick formations, MACD crossovers, or strong rejection wicks at resistance levels. If price reacts at these zones without breaking through decisively, it could be an ideal setup for short opportunities. Always protect your capital with a solid risk management strategy, use clearly defined stop-loss levels (preferably just above R3), and avoid emotional trading decisions. The technicals are aligning for a significant correction—what remains is the right trigger.
🎯 Potential Targets:
• Support Zone 1: 3210.75
• Gap Fill / 26.60% Fib: 3177.26
• Support Zone 2 / 38.20% Fib: 3131.00
• Support Zone 3 / 50% Fib: 3101.50
• Support Zone 4 / 64% Fib: 3052.79
• Final Target / 78.60% Fib: 3022.52
• Demand Zone: 2961.00
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.
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.