Detailed Analysis of the Chart: Gold (XAU/USD)
This chart represents the 4-hour price action of Gold (XAU/USD) against the U.S. Dollar. Here are the details observed from the chart:
Key Observations:
Price Range:
Current Price: $2,719.418
Recent High: $2,724.080
Recent Low: $2,718.715
Green Zone (Supply Zone):
The chart indicates a supply zone (marked in green) where selling pressure is anticipated.
This zone appears to be between $2,730 and $2,740.
Sellers are likely to dominate when the price enters this zone, leading to a potential reversal.
Red Box (Stop-Loss Region):
This zone represents the stop-loss for short positions, just above the supply zone.
Positioned around $2,738.927, indicating cautious risk management for short trades.
Downside Target (Take-Profit Area):
The chart suggests a bearish bias, with a potential downside target near $2,695.956.
This is the take-profit level for sellers, anticipating a downward movement after the price fails to break through the supply zone.
Bearish Rejection:
The price recently attempted to break into the supply zone but faced rejection.
This reinforces the likelihood of a short-term downward move.
Technical Indicators:
The chart does not display indicators like RSI or MACD, but the pattern indicates a potential bearish momentum based on price action alone.
Prediction:
If the price continues to respect the supply zone at $2,730–$2,740:
Expect a pullback towards $2,695, which aligns with the bearish setup shown.
If the price breaks above $2,738, this could invalidate the bearish scenario, leading to a potential bullish breakout.
Recommendation:
Watch for a price retest of the $2,730–$2,740 zone for confirmation of selling pressure.
A break above $2,738 would signal a trend reversal.
