Based on the trend lines in the image, gold (XAU/USD) appears to be forming a descending wedge pattern with lower highs, suggesting bearish momentum. The price recently tested resistance around $2,930 but failed to break above, indicating strong selling pressure.
With the lower trendline acting as support, a potential breakdown below $2,910 could accelerate the sell-off towards $2,900 and lower targets around $2,895-$2,880. Additionally, stochastic divergence at the bottom signals weakening bullish momentum.
Given this setup, we are selling gold with a downside bias, watching for further confirmation of bearish continuation.
With the lower trendline acting as support, a potential breakdown below $2,910 could accelerate the sell-off towards $2,900 and lower targets around $2,895-$2,880. Additionally, stochastic divergence at the bottom signals weakening bullish momentum.
Given this setup, we are selling gold with a downside bias, watching for further confirmation of bearish continuation.
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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.