📉 Technical Analysis: GOLD (XAU/USD) – Bearish Setup Within Falling Parallel Channel
Chart Observations:
GOLD is trading inside a well-defined falling parallel channel.
Price initially respected the lower boundary of the channel before rebounding.
It made a significant break above the median (middle) line and reached the upper channel resistance, then retraced and took support at the median line again.
Currently, price is once again testing the upper channel resistance.
🔍 Current Setup & Possibilities:
1. Bearish Scenario (More Likely)
GOLD is facing resistance near the upper trendline of the falling channel.
If this resistance holds, it is likely to retrace sharply, potentially forming an impulsive move downward.
Immediate downside target aligns with the lower channel support, around $2980.
2. Bullish Scenario (Less Likely)
A breakout above the upper trendline of the channel could trigger a trend reversal.
This breakout could lead to a move toward 3240+ levels in the short term, possibly higher if momentum sustains.
🔽 Conclusion:
GOLD is currently in a bearish structure unless it decisively breaks out of the falling channel.
As per current price action and repeated rejection from upper channel, probability favors a downside continuation toward $2980.
Traders should watch closely for price action confirmation around the upper boundary for potential short setups.
⚠️ Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Trading involves risk, and you should consult your financial advisor before making any investment decisions.
Chart Observations:
GOLD is trading inside a well-defined falling parallel channel.
Price initially respected the lower boundary of the channel before rebounding.
It made a significant break above the median (middle) line and reached the upper channel resistance, then retraced and took support at the median line again.
Currently, price is once again testing the upper channel resistance.
🔍 Current Setup & Possibilities:
1. Bearish Scenario (More Likely)
GOLD is facing resistance near the upper trendline of the falling channel.
If this resistance holds, it is likely to retrace sharply, potentially forming an impulsive move downward.
Immediate downside target aligns with the lower channel support, around $2980.
2. Bullish Scenario (Less Likely)
A breakout above the upper trendline of the channel could trigger a trend reversal.
This breakout could lead to a move toward 3240+ levels in the short term, possibly higher if momentum sustains.
🔽 Conclusion:
GOLD is currently in a bearish structure unless it decisively breaks out of the falling channel.
As per current price action and repeated rejection from upper channel, probability favors a downside continuation toward $2980.
Traders should watch closely for price action confirmation around the upper boundary for potential short setups.
⚠️ Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Trading involves risk, and you should consult your financial advisor before making any investment decisions.
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.