Gold Analysis (XAU/USD)Gold is currently approaching a strong resistance zone, as highlighted in the chart. The price is testing this zone after a bullish impulse, but signs of weakening momentum are emerging. The MACD indicator shows a potential divergence, suggesting the bullish strength may not sustain.
Based on the structure, I'm anticipating a possible rejection from this resistance zone, followed by a corrective move to the downside. The marked blue arrow reflects my projected path for Gold, with the next key target being the support zone around $2,620.
Key factors for this setup:
Resistance Zone: $2,645-$2,650, where previous selling pressure was observed.
Confirmation: Awaiting a bearish candlestick pattern near the resistance zone for additional confirmation.
MACD: Looking for a bearish crossover to reinforce the downside expectation.
Plan:
If rejection occurs, I'll be watching for a retracement into the support zone, with a risk-to-reward ratio in alignment with the current market conditions. Stops will be placed conservatively above the resistance zone.
Let me know your thoughts on this setup! 🚀💬
