Gold Spot (XAU/USD) Technical Analysis: Potential Decline to Key
This analysis of Gold Spot (XAU/USD) on the daily timeframe highlights the price structure, Fibonacci retracement levels, and Andrews' Pitchfork, suggesting the possibility of further downside movement to key support areas.
Key Highlights:
Corrective Wave Structure and Key Resistance:
The recent upward correction appears to have completed near the resistance zone of $2638–$2655, aligning with the 38.2% and 50% Fibonacci retracement levels.
The condition for further decline is the inability to close a daily candle above this resistance zone. Failure to break this level increases the probability of continued bearish movement.
Andrews' Pitchfork:
The price is clearly moving within the Andrews' Pitchfork, which illustrates the overall bearish direction of the market.
Price action at the median and outer lines of the pitchfork will determine the next move.
Key Support Levels:
The first major support level is at $2545, which could act as a short-term target.
If selling pressure persists, the price may drop further to the next significant support at $2495, completing the anticipated C-wave.
DT Oscillator:
The downward turn in the DT Oscillator provides confirmation of continued bearish momentum.
This bearish signal, combined with failure to break the key resistance zone, increases the likelihood of a move toward the identified support levels.
Potential Scenarios:
Bearish Scenario:
If the daily candle fails to close above the $2638–$2655 resistance zone and the DT Oscillator maintains its bearish signal, the price is likely to decline toward $2545 and potentially $2495.
Bullish Scenario:
A close above the $2638–$2655 resistance zone, coupled with a bullish turn in the DT Oscillator, could indicate a potential trend reversal and a move toward higher levels, possibly $2700+.
Conclusion:
Based on Andrews' Pitchfork, the key resistance zone, and the signals from the DT Oscillator, Gold Spot is at a critical juncture. If the resistance holds, the price is likely to decline toward the $2545 and $2495 support levels. Traders should closely monitor the price reaction to these levels and momentum signals for potential setups.
Feel free to share your thoughts or questions in the comments, and don’t forget to follow me for more detailed analyses like this!
Key Highlights:
Corrective Wave Structure and Key Resistance:
The recent upward correction appears to have completed near the resistance zone of $2638–$2655, aligning with the 38.2% and 50% Fibonacci retracement levels.
The condition for further decline is the inability to close a daily candle above this resistance zone. Failure to break this level increases the probability of continued bearish movement.
Andrews' Pitchfork:
The price is clearly moving within the Andrews' Pitchfork, which illustrates the overall bearish direction of the market.
Price action at the median and outer lines of the pitchfork will determine the next move.
Key Support Levels:
The first major support level is at $2545, which could act as a short-term target.
If selling pressure persists, the price may drop further to the next significant support at $2495, completing the anticipated C-wave.
DT Oscillator:
The downward turn in the DT Oscillator provides confirmation of continued bearish momentum.
This bearish signal, combined with failure to break the key resistance zone, increases the likelihood of a move toward the identified support levels.
Potential Scenarios:
Bearish Scenario:
If the daily candle fails to close above the $2638–$2655 resistance zone and the DT Oscillator maintains its bearish signal, the price is likely to decline toward $2545 and potentially $2495.
Bullish Scenario:
A close above the $2638–$2655 resistance zone, coupled with a bullish turn in the DT Oscillator, could indicate a potential trend reversal and a move toward higher levels, possibly $2700+.
Conclusion:
Based on Andrews' Pitchfork, the key resistance zone, and the signals from the DT Oscillator, Gold Spot is at a critical juncture. If the resistance holds, the price is likely to decline toward the $2545 and $2495 support levels. Traders should closely monitor the price reaction to these levels and momentum signals for potential setups.
Feel free to share your thoughts or questions in the comments, and don’t forget to follow me for more detailed analyses like this!
Order cancelled
Given the violation of conditions for the continuation of the downtrend, we anticipate further growth according to the scenario outlined in the provided link:
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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.
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.