Gold Faces Critical Resistance: Will the Bull Run Continue?
Chart Overview
Timeframe: 1-hour chart
Exchange: OANDA
Current Price: 2444.100
Key Levels and Zones
4HR LQZ: 2474.524
1HR LQZ: 2370.122
Support Level: 2348.660
Key Low: 2287.754
Patterns and Channels
Descending Channel:
The price moved within a descending channel before breaking out.
Lower Highs (LH) and Lower Lows (LL) formed within this channel.
Ascending Channel:
The price moved into an ascending channel after breaking out of the descending channel.
Higher Lows (HL) and Higher Highs (HH) are visible, indicating a potential upward trend.
Current Price Action
Recent Higher High (HH): Price reached a higher high at the top of the ascending channel.
Potential Lower High: There is a possibility of forming a new lower high, as indicated by the recent price action near the 4HR LQZ.
Rejection at 4HR LQZ: The price touched the 4HR LQZ and showed signs of rejection, pulling back slightly.
Inset Chart: DXY
The inset chart displays the DXY (US Dollar Index), which shows a descending pattern, potentially indicating USD weakness. This is relevant because gold often inversely correlates with the USD.
Market Sentiment
Bullish Signs:
The breakout from the descending channel.
Formation of the ascending channel with higher highs and higher lows.
Bearish Signs:
Rejection at the 4HR LQZ.
Potential formation of a new lower high, indicating possible weakness or a reversal in the uptrend.
Summary
The XAUUSD chart shows a recent breakout from a descending channel and the formation of an ascending channel, suggesting a short-term bullish trend. However, the price faced rejection at the 4HR LQZ and is showing signs of forming a potential new lower high, which could indicate a reversal or consolidation phase. Monitoring key levels and market sentiment (especially USD movements) will be crucial for future price action.
Timeframe: 1-hour chart
Exchange: OANDA
Current Price: 2444.100
Key Levels and Zones
4HR LQZ: 2474.524
1HR LQZ: 2370.122
Support Level: 2348.660
Key Low: 2287.754
Patterns and Channels
Descending Channel:
The price moved within a descending channel before breaking out.
Lower Highs (LH) and Lower Lows (LL) formed within this channel.
Ascending Channel:
The price moved into an ascending channel after breaking out of the descending channel.
Higher Lows (HL) and Higher Highs (HH) are visible, indicating a potential upward trend.
Current Price Action
Recent Higher High (HH): Price reached a higher high at the top of the ascending channel.
Potential Lower High: There is a possibility of forming a new lower high, as indicated by the recent price action near the 4HR LQZ.
Rejection at 4HR LQZ: The price touched the 4HR LQZ and showed signs of rejection, pulling back slightly.
Inset Chart: DXY
The inset chart displays the DXY (US Dollar Index), which shows a descending pattern, potentially indicating USD weakness. This is relevant because gold often inversely correlates with the USD.
Market Sentiment
Bullish Signs:
The breakout from the descending channel.
Formation of the ascending channel with higher highs and higher lows.
Bearish Signs:
Rejection at the 4HR LQZ.
Potential formation of a new lower high, indicating possible weakness or a reversal in the uptrend.
Summary
The XAUUSD chart shows a recent breakout from a descending channel and the formation of an ascending channel, suggesting a short-term bullish trend. However, the price faced rejection at the 4HR LQZ and is showing signs of forming a potential new lower high, which could indicate a reversal or consolidation phase. Monitoring key levels and market sentiment (especially USD movements) will be crucial for future price action.
This page is designed to:
Help you better understand your personal risk tolerance
Guide you through emotionally charged decisions
Improve your overall trading confidence and performance
Help you better understand your personal risk tolerance
Guide you through emotionally charged decisions
Improve your overall trading confidence and performance
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.