Gold (XAUUSD) has shown strong bullish momentum recently, reaching an all-time high of $3,085.345. However, there are clear signs of bearish divergence forming across the daily, 1-hour, and 15-minute timeframes, suggesting the bullish momentum may be weakening.
Technical Breakdown:
📅 Daily Chart (1D)
Price is making higher highs.
RSI is making lower highs – a classic bearish divergence.
RSI currently at 73.87, in the overbought zone, indicating exhaustion.
🕐 1-Hour Chart (1H)
Similar structure: price climbing while RSI is trending downward.
RSI around 62.27, showing divergence from the new highs in price action.
🕒 15-Minute Chart (15M)
Intraday bearish divergence continues.
Price is riding an upward trendline, while RSI forms lower highs.
If the trendline breaks, it could lead to a swift correction.
Bias: Bearish (Short-Term)
Trade Idea:
If price breaks below the $3,070–$3,060 support zone (trendline on lower timeframes), we could see a pullback toward the following levels:
📉 Target 1: $3,032
📉 Target 2: $3,003
📉 Target 3: $2,980 (Previous consolidation area)
🛑 Stop Loss: Above the recent high at $3,090
Conclusion:
While the macro trend is bullish, the confluence of RSI bearish divergence across multiple timeframes hints at a potential short-term reversal or correction. Risk management is key as Gold remains fundamentally strong.
Let the price action confirm the divergence via a breakdown before entering a short position.
Technical Breakdown:
📅 Daily Chart (1D)
Price is making higher highs.
RSI is making lower highs – a classic bearish divergence.
RSI currently at 73.87, in the overbought zone, indicating exhaustion.
🕐 1-Hour Chart (1H)
Similar structure: price climbing while RSI is trending downward.
RSI around 62.27, showing divergence from the new highs in price action.
🕒 15-Minute Chart (15M)
Intraday bearish divergence continues.
Price is riding an upward trendline, while RSI forms lower highs.
If the trendline breaks, it could lead to a swift correction.
Bias: Bearish (Short-Term)
Trade Idea:
If price breaks below the $3,070–$3,060 support zone (trendline on lower timeframes), we could see a pullback toward the following levels:
📉 Target 1: $3,032
📉 Target 2: $3,003
📉 Target 3: $2,980 (Previous consolidation area)
🛑 Stop Loss: Above the recent high at $3,090
Conclusion:
While the macro trend is bullish, the confluence of RSI bearish divergence across multiple timeframes hints at a potential short-term reversal or correction. Risk management is key as Gold remains fundamentally strong.
Let the price action confirm the divergence via a breakdown before entering a short position.
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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.