Brace Yourself: Is Gold's Bearish Trend to Continue Next Week!?
Key Levels:
Resistance Levels:
$2,480: Recent high, acting as a strong resistance level.
$2,449.525: Previous high, another significant resistance level.
Support Levels:
$2,391.612 (4HR LQZ / TP 1): First significant support level and target point.
$2,348.723 (Daily LQZ / TP 2): Second support level and target point.
$2,289.000 (TP 3): Third support level and long-term target.
Trend Analysis:
The chart shows a clear descending movement from the recent highs, indicating a bearish trend.
The price has broken down from a rising wedge pattern, which is typically a bearish signal.
Indicators and Patterns:
Rising Wedge: The price action formed a rising wedge, and the breakdown confirms the bearish trend.
Price Action: The current price movement shows lower highs and lower lows, which aligns with the bearish trend.
Volume: Consider monitoring the volume for further confirmation of the trend. High volume on down moves indicates stronger bearish sentiment.
Strategy:
Short Positions: Traders might look for shorting opportunities at resistance levels or breakdown retests.
Target Points: The support levels ($2,391.612, $2,348.723, and $2,289.000) serve as potential target points for short positions.
Stop Loss: Place stop-loss orders above the recent highs to manage risk.
Conclusion:
The technical breakdown of XAUUSD indicates a bearish trend continuation. With the price breaking down from a rising wedge and confirming lower highs and lower lows, traders should consider short positions, targeting the support levels mentioned. Keep an eye on the volume and price action for further confirmation and manage risk with appropriate stop-loss levels.
Resistance Levels:
$2,480: Recent high, acting as a strong resistance level.
$2,449.525: Previous high, another significant resistance level.
Support Levels:
$2,391.612 (4HR LQZ / TP 1): First significant support level and target point.
$2,348.723 (Daily LQZ / TP 2): Second support level and target point.
$2,289.000 (TP 3): Third support level and long-term target.
Trend Analysis:
The chart shows a clear descending movement from the recent highs, indicating a bearish trend.
The price has broken down from a rising wedge pattern, which is typically a bearish signal.
Indicators and Patterns:
Rising Wedge: The price action formed a rising wedge, and the breakdown confirms the bearish trend.
Price Action: The current price movement shows lower highs and lower lows, which aligns with the bearish trend.
Volume: Consider monitoring the volume for further confirmation of the trend. High volume on down moves indicates stronger bearish sentiment.
Strategy:
Short Positions: Traders might look for shorting opportunities at resistance levels or breakdown retests.
Target Points: The support levels ($2,391.612, $2,348.723, and $2,289.000) serve as potential target points for short positions.
Stop Loss: Place stop-loss orders above the recent highs to manage risk.
Conclusion:
The technical breakdown of XAUUSD indicates a bearish trend continuation. With the price breaking down from a rising wedge and confirming lower highs and lower lows, traders should consider short positions, targeting the support levels mentioned. Keep an eye on the volume and price action for further confirmation and manage risk with appropriate stop-loss levels.
This page is designed to:
Help you better understand your personal risk tolerance
Guide you through emotionally charged decisions
Improve your overall trading confidence and performance
Help you better understand your personal risk tolerance
Guide you through emotionally charged decisions
Improve your overall trading confidence and performance
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.