Gold in a Tight Spot – Ready to Break Out or Break Down?
let's break down what's happening with Gold (XAU/USD) on this fresh Thursday... We’re seeing some consolidation here, and it's starting to squeeze inside that triangle formation. Look closely at how price action is respecting those trendlines, moving tighter and tighter between the support at $2,640 and resistance near $2,661. Right now, we're at the crossroads—either we get a breakout or a breakdown soon!
We’ve got the 21 EMA hanging right around $2,651, which is keeping price action in check. If the price breaks above that $2,661 resistance and clears the trendline, we might see Gold push higher toward the next major resistance at $2,673. However, if we break down below $2,640 and especially if we close under that, we might see a deeper retracement, potentially toward $2,631.
For the setup, I’m keeping an eye on how price reacts at the $2,650-$2,661 range. If we break above $2,661 and see some volume coming in, I'd consider entering a long trade, aiming for $2,673 and possibly higher. But if we lose $2,640, I’d switch to a more cautious stance, looking for a break below the triangle for a possible short toward $2,631. Stay ready, y’all—this squeeze can break any moment!
We’ve got the 21 EMA hanging right around $2,651, which is keeping price action in check. If the price breaks above that $2,661 resistance and clears the trendline, we might see Gold push higher toward the next major resistance at $2,673. However, if we break down below $2,640 and especially if we close under that, we might see a deeper retracement, potentially toward $2,631.
For the setup, I’m keeping an eye on how price reacts at the $2,650-$2,661 range. If we break above $2,661 and see some volume coming in, I'd consider entering a long trade, aiming for $2,673 and possibly higher. But if we lose $2,640, I’d switch to a more cautious stance, looking for a break below the triangle for a possible short toward $2,631. Stay ready, y’all—this squeeze can break any moment!
Sheena Lynne
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