Gold (XAU/USD) Breaks Key Support – Bearish Move Ahead?
This is a technical analysis chart of XAU/USD (Gold vs. US Dollar) on the 1-hour timeframe from TradingView.
Key Observations:
Ascending Channel Breakdown:
The price has been moving within an upward-sloping channel (blue trendlines).
It recently broke below the lower boundary of the channel, indicating a potential bearish trend shift.
Resistance Zone (Yellow Box):
There is a highlighted yellow zone acting as a resistance area around $2,930 - $2,940.
Price retested this area before moving lower, confirming it as a strong supply zone.
Bearish Projection (Red Arrow):
A bearish move is anticipated with a potential downward target near $2,870 - $2,860.
The break of the trendline suggests further downside pressure.
Short-Term Retracement Possible:
The price might retest the broken trendline before continuing its downward move.
Trading Outlook:
Bearish Bias: A break below support suggests sellers are in control.
Confirmation Needed: If price retests and rejects from the previous support turned resistance, it strengthens the bearish case.
Target Levels: Potential support areas near $2,880 - $2,870.
Risk Management: If price reclaims the resistance area above $2,940, the bearish outlook may be invalidated.
Conclusion:
Downtrend Likely: The break of the ascending channel signals further downside risk.
Key Resistance: $2,930 - $2,940.
Key Support: $2,880 - $2,870.
Key Observations:
Ascending Channel Breakdown:
The price has been moving within an upward-sloping channel (blue trendlines).
It recently broke below the lower boundary of the channel, indicating a potential bearish trend shift.
Resistance Zone (Yellow Box):
There is a highlighted yellow zone acting as a resistance area around $2,930 - $2,940.
Price retested this area before moving lower, confirming it as a strong supply zone.
Bearish Projection (Red Arrow):
A bearish move is anticipated with a potential downward target near $2,870 - $2,860.
The break of the trendline suggests further downside pressure.
Short-Term Retracement Possible:
The price might retest the broken trendline before continuing its downward move.
Trading Outlook:
Bearish Bias: A break below support suggests sellers are in control.
Confirmation Needed: If price retests and rejects from the previous support turned resistance, it strengthens the bearish case.
Target Levels: Potential support areas near $2,880 - $2,870.
Risk Management: If price reclaims the resistance area above $2,940, the bearish outlook may be invalidated.
Conclusion:
Downtrend Likely: The break of the ascending channel signals further downside risk.
Key Resistance: $2,930 - $2,940.
Key Support: $2,880 - $2,870.
Trade closed: target reached
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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.