Market Overview
Gold (XAU/USD) has seen a strong bullish rally, reaching the key resistance zone between $3,020 - $3,083. Given the current market conditions, a price correction down to $2,955 is expected before any potential continuation of the uptrend.
📉 Technical Analysis – Why a Correction is Expected from $3,020 - $3,083?
1. Market Structure and Candlestick Patterns
✅ Strong uptrend but entering overbought territory – Gold has surged from $2,846, reaching a key resistance level where selling pressure might increase. ✅ Reaction at $3,020 - $3,083 – This zone aligns with Fibonacci extensions, historical resistance, and psychological barriers, making it a strong area for a potential reversal. ✅ Reversal Candlestick Signals – If reversal patterns like Doji, Bearish Engulfing, or Shooting Star appear on the daily or 4-hour chart, it would confirm the correction.
2. Indicator Analysis
📌 MACD 🔹 The histogram is losing bullish momentum, with a potential bearish crossover forming. 🔹 If a MACD bearish crossover occurs, it would confirm the likelihood of a price correction.
📌 RSI (Relative Strength Index) 🔹 RSI is approaching the 70 overbought zone, signaling a potential pullback. 🔹 A drop below 65 would further confirm the correction phase.
📌 Supertrend 🔹 Currently bullish, but if $2,955 is broken, it may shift bearish.
3. Key Price Levels & Expected Market Reactions
Price Level
Movement Type
Significance & Explanation
$3,020 - $3,083
Major Resistance Zone
Likely reversal and selling pressure area
$2,955
Key Support Level
Critical zone for potential trend continuation
$2,920 - $2,940
Stabilization Area
If $2,955 breaks, this becomes the next key support
📊 Trading Strategy
📍 Scenario 1 (Correction to $2,955 and Rebound) ✅ If reversal signals appear in the $3,020 - $3,083 zone, a short position can be considered. 🎯 Target 1: $2,955 (initial correction level) 🎯 Target 2: $2,920 (if $2,955 breaks) ⛔ Stop Loss: Above $3,085 to protect against a breakout.
📍 Scenario 2 (Bullish Rebound from $2,955 for Continuation Upward) ✅ If gold stabilizes around $2,955 with bullish signals (hammer, engulfing patterns), a long position could be initiated. 🎯 Target 1: Retest of $3,000 🎯 Target 2: If broken, continuation to $3,100
📌 Conclusion
📌 Gold is expected to retrace after reaching the $3,020 - $3,083 resistance zone. 📌 Bearish divergence in MACD and RSI suggests weakening momentum. 📌 $2,955 is a key support level – if it holds, a new bullish move may follow. 📌 A decisive break below $2,955 could extend the correction to $2,920.
🚀 Summary: A sell opportunity exists in the $3,020 - $3,083 range with a target at $2,955, while a buy opportunity could emerge around $2,955 if bullish signals confirm a rebound. Risk management remains crucial.
Gold (XAU/USD) has seen a strong bullish rally, reaching the key resistance zone between $3,020 - $3,083. Given the current market conditions, a price correction down to $2,955 is expected before any potential continuation of the uptrend.
📉 Technical Analysis – Why a Correction is Expected from $3,020 - $3,083?
1. Market Structure and Candlestick Patterns
✅ Strong uptrend but entering overbought territory – Gold has surged from $2,846, reaching a key resistance level where selling pressure might increase. ✅ Reaction at $3,020 - $3,083 – This zone aligns with Fibonacci extensions, historical resistance, and psychological barriers, making it a strong area for a potential reversal. ✅ Reversal Candlestick Signals – If reversal patterns like Doji, Bearish Engulfing, or Shooting Star appear on the daily or 4-hour chart, it would confirm the correction.
2. Indicator Analysis
📌 MACD 🔹 The histogram is losing bullish momentum, with a potential bearish crossover forming. 🔹 If a MACD bearish crossover occurs, it would confirm the likelihood of a price correction.
📌 RSI (Relative Strength Index) 🔹 RSI is approaching the 70 overbought zone, signaling a potential pullback. 🔹 A drop below 65 would further confirm the correction phase.
📌 Supertrend 🔹 Currently bullish, but if $2,955 is broken, it may shift bearish.
3. Key Price Levels & Expected Market Reactions
Price Level
Movement Type
Significance & Explanation
$3,020 - $3,083
Major Resistance Zone
Likely reversal and selling pressure area
$2,955
Key Support Level
Critical zone for potential trend continuation
$2,920 - $2,940
Stabilization Area
If $2,955 breaks, this becomes the next key support
📊 Trading Strategy
📍 Scenario 1 (Correction to $2,955 and Rebound) ✅ If reversal signals appear in the $3,020 - $3,083 zone, a short position can be considered. 🎯 Target 1: $2,955 (initial correction level) 🎯 Target 2: $2,920 (if $2,955 breaks) ⛔ Stop Loss: Above $3,085 to protect against a breakout.
📍 Scenario 2 (Bullish Rebound from $2,955 for Continuation Upward) ✅ If gold stabilizes around $2,955 with bullish signals (hammer, engulfing patterns), a long position could be initiated. 🎯 Target 1: Retest of $3,000 🎯 Target 2: If broken, continuation to $3,100
📌 Conclusion
📌 Gold is expected to retrace after reaching the $3,020 - $3,083 resistance zone. 📌 Bearish divergence in MACD and RSI suggests weakening momentum. 📌 $2,955 is a key support level – if it holds, a new bullish move may follow. 📌 A decisive break below $2,955 could extend the correction to $2,920.
🚀 Summary: A sell opportunity exists in the $3,020 - $3,083 range with a target at $2,955, while a buy opportunity could emerge around $2,955 if bullish signals confirm a rebound. Risk management remains crucial.
Trade active
Price Reached our expected target. H1 Close below 3020 confirms the downfall. 
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.
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.