Gold (XAU/USD) - 4H Analysis
Technical Overview:
Price is moving within a well-defined ascending channel.
It is currently testing the upper boundary of the channel, which has acted as resistance multiple times (highlighted in orange circles).
Historically, each time price touches this upper boundary, a pullback follows.
Key Levels to Watch:
Resistance: $3,000 - $3,020 (Channel top & psychological level)
Support: $2,900 (Mid-channel) and $2,800 (Channel bottom)
Indicators:
RSI (14) is at 74.71, indicating overbought conditions, which increases the probability of a short-term pullback.
If RSI drops below 70, it would signal a potential bearish correction.
Potential Scenarios:
Bearish Rejection (Higher Probability)
If price fails to break above $3,000, expect a pullback toward $2,900-$2,850.
RSI supports this as it is in the overbought zone.
A strong rejection candle at resistance would confirm a short trade.
Bullish Breakout (Lower Probability, but possible)
If price breaks and holds above $3,000, we could see an extension toward $3,050 - $3,100.
RSI would need to sustain above 70 without sharp divergence.
Trading Plan:
Short if rejection happens near $3,000, targeting $2,900.
Stop loss above $3,020 to invalidate the short idea.
Buy if price breaks and retests $3,000 successfully, targeting $3,050-$3,100.
Would you like a deeper breakdown or confirmation signals? 🚀
Technical Overview:
Price is moving within a well-defined ascending channel.
It is currently testing the upper boundary of the channel, which has acted as resistance multiple times (highlighted in orange circles).
Historically, each time price touches this upper boundary, a pullback follows.
Key Levels to Watch:
Resistance: $3,000 - $3,020 (Channel top & psychological level)
Support: $2,900 (Mid-channel) and $2,800 (Channel bottom)
Indicators:
RSI (14) is at 74.71, indicating overbought conditions, which increases the probability of a short-term pullback.
If RSI drops below 70, it would signal a potential bearish correction.
Potential Scenarios:
Bearish Rejection (Higher Probability)
If price fails to break above $3,000, expect a pullback toward $2,900-$2,850.
RSI supports this as it is in the overbought zone.
A strong rejection candle at resistance would confirm a short trade.
Bullish Breakout (Lower Probability, but possible)
If price breaks and holds above $3,000, we could see an extension toward $3,050 - $3,100.
RSI would need to sustain above 70 without sharp divergence.
Trading Plan:
Short if rejection happens near $3,000, targeting $2,900.
Stop loss above $3,020 to invalidate the short idea.
Buy if price breaks and retests $3,000 successfully, targeting $3,050-$3,100.
Would you like a deeper breakdown or confirmation signals? 🚀
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.