🧠 Technical Analysis Overview:
The chart displays a classic Rising Wedge pattern, which is a bearish reversal setup. The price action within the wedge shows higher highs and higher lows converging, indicating potential weakness in the bullish momentum.
As of the latest candles, XAUUSD appears to be breaking down below the lower support trendline of the wedge, signaling a potential bearish move ahead.
📍 Key Levels:
Current Price: $3,300.75
Stop Loss: $3,350.53
Target: $3,165.32
Support Zone: Around $3,165 – $3,121
Resistance Zone: $3,345 – $3,350
📊 Trade Setup:
Bias: Bearish
Entry: After confirmation of wedge breakdown (preferably a retest of broken support)
Stop Loss: Placed above recent highs and wedge resistance at $3,350.53
Take Profit: Projected by measuring the height of the wedge and applying it downward from the breakdown point, targeting $3,165.32
📌 Rationale:
Rising Wedge is generally a bearish reversal pattern, especially when forming after a strong uptrend.
The market structure is weakening, with the last highs showing bearish rejection.
Volume and momentum indicators (not shown here) may confirm the breakdown.
Risk/reward ratio is favorable if entry occurs after breakdown confirmation or a slight pullback.
⚠️ Risk Management:
Always wait for candle close confirmation below the wedge before entering. False breakouts are common, so a tight but logical stop is necessary. Adjust position sizing based on your risk tolerance.
🔔 Watch For:
Bearish engulfing candles or high-volume sell-offs confirming downside
Retest of the broken support as resistance
US economic data or FOMC events that could inject volatility into XAUUSD
💬 Let me know your thoughts! Do you agree with the bearish wedge breakdown, or do you expect a fakeout and continuation higher? Drop your analysis below. 👇
The chart displays a classic Rising Wedge pattern, which is a bearish reversal setup. The price action within the wedge shows higher highs and higher lows converging, indicating potential weakness in the bullish momentum.
As of the latest candles, XAUUSD appears to be breaking down below the lower support trendline of the wedge, signaling a potential bearish move ahead.
📍 Key Levels:
Current Price: $3,300.75
Stop Loss: $3,350.53
Target: $3,165.32
Support Zone: Around $3,165 – $3,121
Resistance Zone: $3,345 – $3,350
📊 Trade Setup:
Bias: Bearish
Entry: After confirmation of wedge breakdown (preferably a retest of broken support)
Stop Loss: Placed above recent highs and wedge resistance at $3,350.53
Take Profit: Projected by measuring the height of the wedge and applying it downward from the breakdown point, targeting $3,165.32
📌 Rationale:
Rising Wedge is generally a bearish reversal pattern, especially when forming after a strong uptrend.
The market structure is weakening, with the last highs showing bearish rejection.
Volume and momentum indicators (not shown here) may confirm the breakdown.
Risk/reward ratio is favorable if entry occurs after breakdown confirmation or a slight pullback.
⚠️ Risk Management:
Always wait for candle close confirmation below the wedge before entering. False breakouts are common, so a tight but logical stop is necessary. Adjust position sizing based on your risk tolerance.
🔔 Watch For:
Bearish engulfing candles or high-volume sell-offs confirming downside
Retest of the broken support as resistance
US economic data or FOMC events that could inject volatility into XAUUSD
💬 Let me know your thoughts! Do you agree with the bearish wedge breakdown, or do you expect a fakeout and continuation higher? Drop your analysis below. 👇
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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.