Gold Tests Resistance in Bearish Channel
Updated
Gold is trading at $2,657.33, gaining +0.75% intraday, but remains confined within a clear descending channel, reflecting sustained medium-term bearish momentum. The recent upward move is likely a corrective rally, with price action now approaching a decisive resistance zone.
The $2,680–$2,700 resistance level is critical. A failure to break above this zone would confirm the ongoing bearish trend, presenting a strong selling opportunity. In this scenario, traders should target $2,600 as the next support, with an extended move toward $2,500, aligning with the lower boundary of the channel.
However, if the price breaks above $2,700, it would invalidate the bearish outlook and suggest a potential trend reversal. In this case, a rally toward $2,750–$2,800 could be expected, driven by renewed buying momentum. For bullish positions, confirmation through a daily close above $2,700 is essential.
Strategic Direction
Bearish Setup: Look for short positions near $2,680–$2,700 with targets at $2,600 and $2,500. Set a stop loss above $2,710 to limit risk.
Bullish Alternative: Enter long positions only on a confirmed breakout above $2,700, targeting $2,750 and higher, with a stop loss below $2,680.
Traders should remain focused on the resistance zone at $2,680–$2,700, as the price’s reaction here will define the next significant move.
The $2,680–$2,700 resistance level is critical. A failure to break above this zone would confirm the ongoing bearish trend, presenting a strong selling opportunity. In this scenario, traders should target $2,600 as the next support, with an extended move toward $2,500, aligning with the lower boundary of the channel.
However, if the price breaks above $2,700, it would invalidate the bearish outlook and suggest a potential trend reversal. In this case, a rally toward $2,750–$2,800 could be expected, driven by renewed buying momentum. For bullish positions, confirmation through a daily close above $2,700 is essential.
Strategic Direction
Bearish Setup: Look for short positions near $2,680–$2,700 with targets at $2,600 and $2,500. Set a stop loss above $2,710 to limit risk.
Bullish Alternative: Enter long positions only on a confirmed breakout above $2,700, targeting $2,750 and higher, with a stop loss below $2,680.
Traders should remain focused on the resistance zone at $2,680–$2,700, as the price’s reaction here will define the next significant move.
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