Bearish Wedge Breakdown: Key Levels to Watch!
Updated
XAUUSD After analyzing the 1-hour chart, we identified an Ascending Broadening Wedge, signaling a bearish continuation. In our previous analysis, we forecasted a drop to 2656, but the price fell just short, reaching 2658. This time, we anticipate a break below 2656. If the price breaks this level, our next target will be 2578.
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After analyzing multiple charts, we observe weak momentum on the volume, while the daily timeframe indicates indecision. On the 3-hour chart, a bearish flag continuation pattern has formed. Most higher timeframes are trading below the 50 SMA, and on the daily chart, the 21 and 50 SMAs are nearing a crossover. Additionally, on the 2-hour chart, the moving averages have recently formed a death cross, suggesting a bearish bias with potential for further decline.
However, if the price breaks out above 2656, a significant upward move could follow.
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Note
Yesterday, the price formed a flag pattern, which later transitioned into a rounding bottom, ultimately reaching just below the resistance level at 2656.250. As mentioned previously, if the price sustains above 2656, it is highly likely to pump higher.
Note
After analyzing multiple timeframes, the price action indicates weakening bullish momentum. As mentioned earlier, there is a resistance level at 2656. Additionally, the presence of multiple Doji candles suggests indecision and potential weakness in the bullish trend. Based on the observed volume and candlestick patterns, we anticipate the price to face rejection at this level and potentially decline towards 2578.Trade closed manually
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