🔍 1. Market Context & Structure
Gold has recently experienced a sharp decline, as evident from the aggressive bearish candles leading into the consolidation phase. Following this downward momentum, the market began to consolidate, forming a Falling Wedge pattern—a bullish reversal structure that often signals an impending upside breakout, especially after a strong bearish trend.
📉 2. Falling Wedge Pattern
The wedge is formed by two downward-sloping trendlines that converge, containing price within lower highs and lower lows.
Notice how price is respecting both boundaries, confirming the validity of the pattern.
The pattern also features a series of higher lows, showing a loss of bearish momentum.
🟩 3. Support and Resistance Levels
Resistance Zone: Around $3,035 to $3,045 — This level previously acted as a strong supply zone where price was rejected multiple times.
Support Zone: Around $2,972 to $2,985 — Clearly marked area where buyers stepped in strongly during the sharp pullback.
These levels are critical to observe for any breakout or breakdown confirmation.
📊 4. Trade Plan Based on the Chart
✅ Bullish Bias:
Given the falling wedge setup and slowing bearish pressure, the trade idea favors a breakout to the upside.
🔵 Entry Point:
A confirmed breakout above the wedge’s upper boundary (around $3,030–$3,035), ideally on strong bullish volume.
🎯 Target:
The first take profit level is marked at $3,078.438, aligning with a prior resistance and measured move projection from the wedge’s height.
🔴 Stop Loss:
Positioned just below the most recent swing low and wedge boundary at $3,013.707, offering protection if the breakout fails.
🧠 5. Why This Setup Matters
Wedge patterns are high-probability when they form after a sharp move, as seen here.
Volume confirmation on the breakout would solidify this as a reliable opportunity.
Risk-to-reward ratio appears favorable, with a tight stop and a higher projected upside.
🧭 Conclusion
This is a textbook falling wedge breakout scenario. The consolidation after a bearish leg, narrowing price action, and repeated support reactions indicate that bulls are gearing up. If Gold breaks above the wedge with momentum, there’s potential to ride the move toward $3,078. Always wait for confirmation and manage your risk accordingly.
Gold has recently experienced a sharp decline, as evident from the aggressive bearish candles leading into the consolidation phase. Following this downward momentum, the market began to consolidate, forming a Falling Wedge pattern—a bullish reversal structure that often signals an impending upside breakout, especially after a strong bearish trend.
📉 2. Falling Wedge Pattern
The wedge is formed by two downward-sloping trendlines that converge, containing price within lower highs and lower lows.
Notice how price is respecting both boundaries, confirming the validity of the pattern.
The pattern also features a series of higher lows, showing a loss of bearish momentum.
🟩 3. Support and Resistance Levels
Resistance Zone: Around $3,035 to $3,045 — This level previously acted as a strong supply zone where price was rejected multiple times.
Support Zone: Around $2,972 to $2,985 — Clearly marked area where buyers stepped in strongly during the sharp pullback.
These levels are critical to observe for any breakout or breakdown confirmation.
📊 4. Trade Plan Based on the Chart
✅ Bullish Bias:
Given the falling wedge setup and slowing bearish pressure, the trade idea favors a breakout to the upside.
🔵 Entry Point:
A confirmed breakout above the wedge’s upper boundary (around $3,030–$3,035), ideally on strong bullish volume.
🎯 Target:
The first take profit level is marked at $3,078.438, aligning with a prior resistance and measured move projection from the wedge’s height.
🔴 Stop Loss:
Positioned just below the most recent swing low and wedge boundary at $3,013.707, offering protection if the breakout fails.
🧠 5. Why This Setup Matters
Wedge patterns are high-probability when they form after a sharp move, as seen here.
Volume confirmation on the breakout would solidify this as a reliable opportunity.
Risk-to-reward ratio appears favorable, with a tight stop and a higher projected upside.
🧭 Conclusion
This is a textbook falling wedge breakout scenario. The consolidation after a bearish leg, narrowing price action, and repeated support reactions indicate that bulls are gearing up. If Gold breaks above the wedge with momentum, there’s potential to ride the move toward $3,078. Always wait for confirmation and manage your risk accordingly.
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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.