XAU/USD 1H Chart Analysis – Bearish Triangle Breakout
🔷 1. Chart Pattern Formation: Symmetrical Triangle
The market had been consolidating within a symmetrical triangle, a pattern defined by descending resistance and ascending support lines.
This pattern reflects price compression — a tug-of-war between buyers and sellers — leading to a breakout as volatility contracts.
On this chart, the triangle formed over multiple trading sessions, touching both upper and lower trendlines repeatedly (highlighted with orange circles), increasing the reliability of the setup.
🔷 2. Key Zones Identified
✅ Resistance Zone:
Defined between $3,285–$3,295, where price repeatedly failed to break higher.
This zone acted as the upper boundary of the triangle, with clear rejection wicks marking seller strength.
✅ Support Zone:
Identified between $3,258–$3,265, which served as the lower boundary of the triangle.
Buyers temporarily stepped in here, creating a short-term base before eventual breakdown.
🔷 3. Breakout Confirmation
The price broke below the ascending support line of the triangle, confirming a bearish breakout.
This is further validated by a bearish retest, where price briefly returned to the broken support area and rejected again (a classic confirmation for short positions).
🔷 4. Trade Setup Parameters
Parameter Level Rationale
Entry After breakout below $3,260 Breakout confirmation from triangle
Target 1 (TP1) $3,182.317 Measured support level / interim profit zone
Target 2 (TP2) $3,139.186 Measured move from triangle height
Stop Loss (SL) $3,308.833 Just above last swing high and triangle top
TP2 is projected by taking the height of the triangle (approx. $150) and subtracting it from the breakdown level.
SL is placed above triangle resistance to invalidate the pattern if breached.
🔷 5. Volume & Momentum Consideration
Volume generally contracts during triangle formation and expands during breakout.
This breakout shows bearish momentum acceleration, indicating strong seller participation.
🔷 6. Psychological and Fundamental Factors
The triangle formed after a significant downward impulse, suggesting a bearish continuation pattern.
Traders should also consider macro news such as:
U.S. interest rate changes
Non-farm payroll (NFP) data
Geopolitical instability (Gold as a safe haven)
✅ Professional Conclusion
This is a high-probability bearish continuation setup:
Formed after a downtrend
Validated triangle breakdown
Clean retest with rejection
Defined risk and target levels for position management
Traders can look to enter short with confirmation and trail stop-loss as price moves toward TP1 and TP2. Risk management and fundamental awareness remain crucial.
🔷 1. Chart Pattern Formation: Symmetrical Triangle
The market had been consolidating within a symmetrical triangle, a pattern defined by descending resistance and ascending support lines.
This pattern reflects price compression — a tug-of-war between buyers and sellers — leading to a breakout as volatility contracts.
On this chart, the triangle formed over multiple trading sessions, touching both upper and lower trendlines repeatedly (highlighted with orange circles), increasing the reliability of the setup.
🔷 2. Key Zones Identified
✅ Resistance Zone:
Defined between $3,285–$3,295, where price repeatedly failed to break higher.
This zone acted as the upper boundary of the triangle, with clear rejection wicks marking seller strength.
✅ Support Zone:
Identified between $3,258–$3,265, which served as the lower boundary of the triangle.
Buyers temporarily stepped in here, creating a short-term base before eventual breakdown.
🔷 3. Breakout Confirmation
The price broke below the ascending support line of the triangle, confirming a bearish breakout.
This is further validated by a bearish retest, where price briefly returned to the broken support area and rejected again (a classic confirmation for short positions).
🔷 4. Trade Setup Parameters
Parameter Level Rationale
Entry After breakout below $3,260 Breakout confirmation from triangle
Target 1 (TP1) $3,182.317 Measured support level / interim profit zone
Target 2 (TP2) $3,139.186 Measured move from triangle height
Stop Loss (SL) $3,308.833 Just above last swing high and triangle top
TP2 is projected by taking the height of the triangle (approx. $150) and subtracting it from the breakdown level.
SL is placed above triangle resistance to invalidate the pattern if breached.
🔷 5. Volume & Momentum Consideration
Volume generally contracts during triangle formation and expands during breakout.
This breakout shows bearish momentum acceleration, indicating strong seller participation.
🔷 6. Psychological and Fundamental Factors
The triangle formed after a significant downward impulse, suggesting a bearish continuation pattern.
Traders should also consider macro news such as:
U.S. interest rate changes
Non-farm payroll (NFP) data
Geopolitical instability (Gold as a safe haven)
✅ Professional Conclusion
This is a high-probability bearish continuation setup:
Formed after a downtrend
Validated triangle breakdown
Clean retest with rejection
Defined risk and target levels for position management
Traders can look to enter short with confirmation and trail stop-loss as price moves toward TP1 and TP2. Risk management and fundamental awareness remain crucial.
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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.