Gold & Bearish Pennant: Clearer Signs of a Downtrend?Dear friends, it's a pleasure to see you again in today's gold trading session.
At present, according to careful observation and technical analysis, we can see that
OANDA:XAUUSD is showing signs of a slight correction and is likely forming a bearish pennant pattern, consistent with a common continuation candlestick pattern in a downtrend. Specifically:
Previously, the price experienced a strong decline, which plays the role of the “flagpole” of the pattern.
After the drop, the price temporarily moved sideways within a narrow range, gradually narrowing the range and forming a small triangle – characteristic of the consolidation phase in the pennant pattern.
Trading volume also shows a decreasing trend, consistent with the characteristics of this pattern.
With these factors, the current preferred scenario is the continuation of the downtrend, so the Sell position is considered more feasible. I think we could see a move down to $3,155. This area is quite important and could give us a better idea of where the price is headed next.
Just sharing my thoughts on support and resistance, this is not financial advice. Always confirm your setup and manage your risk wisely.
