📊 Technical Overview:
Price Action:
Gold is currently trading at $3,228, right at the top of a rising parallel channel. The recent rally has been very steep, showing strong bullish momentum — but also signaling potential exhaustion at the top of the channel.
Key Resistance Zone:
Price is testing the upper boundary of the channel, which historically acts as a reversal or pullback zone.
Support to Watch:
The blue horizontal level at $3,161 looks like a previous resistance-turned-support, aligning with mid-channel structure and prior breakout zone. This is likely the first major target in a pullback scenario.
📉 RSI (14):
Currently at 70.17, in overbought territory, hinting at a potential short-term correction.
The RSI has already started curving downward slightly, supporting the idea of a pullback.
🔎 Volume Observation:
Strong bullish candles with increasing volume recently — but the last few candles show waning momentum, which could indicate buyers are stepping back at this level.
🔻 Potential Trade Idea:
Bias: Short-term bearish (counter-trend pullback)
Entry idea: Short near current level ($3,228), ideally on bearish confirmation (e.g. bearish engulfing candle, 15/30m breakdown)
TP1: $3,161 (blue horizontal line — strong confluence zone)
SL: Above $3,240 (above the channel top to avoid fakeouts)
✅ Summary:
Gold looks overextended after a strong rally and may be due for a healthy correction toward mid-channel support at $3,161. RSI supports this idea, and price structure aligns well with a pullback scenario.
Price Action:
Gold is currently trading at $3,228, right at the top of a rising parallel channel. The recent rally has been very steep, showing strong bullish momentum — but also signaling potential exhaustion at the top of the channel.
Key Resistance Zone:
Price is testing the upper boundary of the channel, which historically acts as a reversal or pullback zone.
Support to Watch:
The blue horizontal level at $3,161 looks like a previous resistance-turned-support, aligning with mid-channel structure and prior breakout zone. This is likely the first major target in a pullback scenario.
📉 RSI (14):
Currently at 70.17, in overbought territory, hinting at a potential short-term correction.
The RSI has already started curving downward slightly, supporting the idea of a pullback.
🔎 Volume Observation:
Strong bullish candles with increasing volume recently — but the last few candles show waning momentum, which could indicate buyers are stepping back at this level.
🔻 Potential Trade Idea:
Bias: Short-term bearish (counter-trend pullback)
Entry idea: Short near current level ($3,228), ideally on bearish confirmation (e.g. bearish engulfing candle, 15/30m breakdown)
TP1: $3,161 (blue horizontal line — strong confluence zone)
SL: Above $3,240 (above the channel top to avoid fakeouts)
✅ Summary:
Gold looks overextended after a strong rally and may be due for a healthy correction toward mid-channel support at $3,161. RSI supports this idea, and price structure aligns well with a pullback scenario.
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.