This chart is a 4-hour timeframe of CFDs on Gold (XAU/USD), showing price action around the 3,000 level. Here’s an analysis of the technical setup:
Key Observations:
1. Uptrend Formation:
The price has been in a strong uptrend, forming higher highs and higher lows.
The yellow trendlines indicate a pattern of bullish momentum.
2. Resistance Zone (Red Box - 3,000 to 3,040 Area):
The price is currently at a key resistance zone.
Multiple red arrows suggest potential rejection from this level.
3. Potential Reversal Setup:
The large red arrow and yellow trendline indicate a bearish scenario.
A drop is expected from the resistance zone, with a target near the previous support (~2,960).
4. Support Zone (Blue Box - 2,960 Area):
If the price follows the expected downward move, it may find support in this blue zone.
The white horizontal line below acts as a key level to watch.
Possible Trading Scenarios:
1. Bearish Scenario (More Likely Based on the Chart)
If price rejects the resistance zone, a short position could be considered.
Target: 2,960 zone.
Stop-loss: Above 3,040.
2. Bullish Breakout (Less Likely)
If gold breaks above the red resistance box with strong momentum, it could continue higher.
Next resistance: 3,080+.
Conclusion:
Current sentiment leans bearish due to resistance rejection signals.
A break below 2,960 could lead to a further drop.
However, a strong breakout above 3,040 invalidates the bearish outlook.
Key Observations:
1. Uptrend Formation:
The price has been in a strong uptrend, forming higher highs and higher lows.
The yellow trendlines indicate a pattern of bullish momentum.
2. Resistance Zone (Red Box - 3,000 to 3,040 Area):
The price is currently at a key resistance zone.
Multiple red arrows suggest potential rejection from this level.
3. Potential Reversal Setup:
The large red arrow and yellow trendline indicate a bearish scenario.
A drop is expected from the resistance zone, with a target near the previous support (~2,960).
4. Support Zone (Blue Box - 2,960 Area):
If the price follows the expected downward move, it may find support in this blue zone.
The white horizontal line below acts as a key level to watch.
Possible Trading Scenarios:
1. Bearish Scenario (More Likely Based on the Chart)
If price rejects the resistance zone, a short position could be considered.
Target: 2,960 zone.
Stop-loss: Above 3,040.
2. Bullish Breakout (Less Likely)
If gold breaks above the red resistance box with strong momentum, it could continue higher.
Next resistance: 3,080+.
Conclusion:
Current sentiment leans bearish due to resistance rejection signals.
A break below 2,960 could lead to a further drop.
However, a strong breakout above 3,040 invalidates the bearish outlook.
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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.
Follow my Telegram channel get more vip signal link in Bio click there
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.