Gold (XAU/USD)* displays a significant bearish reversal after the price encountered a *strong sell zone* near *3,050*. The price moved up towards this resistance zone before sharply reversing, highlighted by the *red arrow* marking the rejection point at the *strong sell zone*.
The chart also shows several *support zones* (marked with *green arrows*) where the price had bounced in the past, indicating potential levels for price reversal. However, the recent downward movement suggests that these support levels might now be tested for potential breaks.
The *blue trendline* shows the previous uptrend, which has been broken, signaling a shift in momentum toward a more bearish outlook. If the price continues to hold below the *strong sell zone* around *3,050* and fails to break above it, further downside movement could be expected.
The key support area is near *2,950* to *2,940*, where previous support levels could act as a safety net for the price. If the price breaches this support, it could open the door for a deeper pullback towards *2,925* or further.
The chart also shows several *support zones* (marked with *green arrows*) where the price had bounced in the past, indicating potential levels for price reversal. However, the recent downward movement suggests that these support levels might now be tested for potential breaks.
The *blue trendline* shows the previous uptrend, which has been broken, signaling a shift in momentum toward a more bearish outlook. If the price continues to hold below the *strong sell zone* around *3,050* and fails to break above it, further downside movement could be expected.
The key support area is near *2,950* to *2,940*, where previous support levels could act as a safety net for the price. If the price breaches this support, it could open the door for a deeper pullback towards *2,925* or further.
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Related publications
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.