XAUUSD (Gold) 1H Analysis – Head and Shoulders Breakdown
Chart Pattern Analysis:
The chart displays a Head and Shoulders pattern, a classic bearish reversal structure.
The left shoulder, head, and right shoulder are clearly labeled, confirming the formation.
Price has broken below the neckline, signaling potential further downside movement.
Support and Resistance Levels:
The breakdown target is measured from the head to the neckline, which suggests a further decline.
Immediate support: Around 3,000 – 3,010 zone (psychological level and prior structure).
Resistance: 3,035 – 3,050 (previous highs and right shoulder area).
Volume & RSI Analysis:
Volume increased slightly on the breakdown, confirming selling pressure.
RSI is at 40.22, indicating bearish momentum but not yet oversold, meaning there could be more downside before a bounce.
Trade Considerations:
📉 Bearish bias as long as price stays below the neckline.
🎯 Potential targets: 3,000 – 2,980 zone.
⚠️ Watch for a retest of the neckline (potential short entry if rejection occurs).
🔄 If price reclaims the neckline, invalidation of the bearish setup is possible.
Chart Pattern Analysis:
The chart displays a Head and Shoulders pattern, a classic bearish reversal structure.
The left shoulder, head, and right shoulder are clearly labeled, confirming the formation.
Price has broken below the neckline, signaling potential further downside movement.
Support and Resistance Levels:
The breakdown target is measured from the head to the neckline, which suggests a further decline.
Immediate support: Around 3,000 – 3,010 zone (psychological level and prior structure).
Resistance: 3,035 – 3,050 (previous highs and right shoulder area).
Volume & RSI Analysis:
Volume increased slightly on the breakdown, confirming selling pressure.
RSI is at 40.22, indicating bearish momentum but not yet oversold, meaning there could be more downside before a bounce.
Trade Considerations:
📉 Bearish bias as long as price stays below the neckline.
🎯 Potential targets: 3,000 – 2,980 zone.
⚠️ Watch for a retest of the neckline (potential short entry if rejection occurs).
🔄 If price reclaims the neckline, invalidation of the bearish setup is possible.
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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.