This chart shows a technical analysis of Gold (CFDs on Gold - XAU/USD) on the 1-hour timeframe, with a focus on a bearish (downward) trade setup. Here's a detailed breakdown of what it means:
📊 Chart Summary
1. Resistance Zone (Green Area on Top)
Around $3,340–$3,360.
This is where sellers are expected to be strong.
Price previously reversed from this zone (shown by the black arrows), indicating a double rejection and confirming it as strong resistance.
2. Support Zone (Blue Area in Middle)
Around $3,260–$3,270.
This is the immediate support level, where price has bounced in the past.
3. Strong Support Zone (Lower Black Line)
Around $3,208.075.
Marked as a major level where buyers may step in if price continues to fall.
🛠️ Trade Idea Explained
Current Price: $3,288.640 (slightly under short-term resistance).
The chart shows a short/sell setup with an expectation of:
Price rejecting at the red zone (above current price).
A downward move toward the support at $3,243.856, and possibly even lower to $3,208.075.
Red Box (Stop-Loss Area): Where the trade would be invalidated if the price rises above this zone.
Green Box (Take-Profit Area): The expected downward target zone.
Black Downward Arrow: Indicates the projected direction of the price (bearish bias).
📏 EMA Indicators
EMAs (Exponential Moving Averages): 20, 50, 100, 200 periods
These are currently flat to slightly downward, suggesting neutral to bearish trend.
Price is under some of these EMAs, reinforcing the downward pressure.
🧠 Interpretation
The chart suggests a high-probability short trade from current levels.
The idea is to sell near the current price (under resistance) and aim for a move down to the next support zone.
It assumes the resistance zone will hold and price will move down without breaking above the stop-loss area.
⚠️ Caution
This setup requires confirmation (e.g., bearish candle or rejection wick).
Always use risk management and be aware of economic news that may affect gold.
✅ One-Line Title Suggestion
Gold (XAU/USD) Bearish Rejection Setup Targeting Key Support Zones
Let me know if you'd like a trade plan or a version of this for another timeframe.
📊 Chart Summary
1. Resistance Zone (Green Area on Top)
Around $3,340–$3,360.
This is where sellers are expected to be strong.
Price previously reversed from this zone (shown by the black arrows), indicating a double rejection and confirming it as strong resistance.
2. Support Zone (Blue Area in Middle)
Around $3,260–$3,270.
This is the immediate support level, where price has bounced in the past.
3. Strong Support Zone (Lower Black Line)
Around $3,208.075.
Marked as a major level where buyers may step in if price continues to fall.
🛠️ Trade Idea Explained
Current Price: $3,288.640 (slightly under short-term resistance).
The chart shows a short/sell setup with an expectation of:
Price rejecting at the red zone (above current price).
A downward move toward the support at $3,243.856, and possibly even lower to $3,208.075.
Red Box (Stop-Loss Area): Where the trade would be invalidated if the price rises above this zone.
Green Box (Take-Profit Area): The expected downward target zone.
Black Downward Arrow: Indicates the projected direction of the price (bearish bias).
📏 EMA Indicators
EMAs (Exponential Moving Averages): 20, 50, 100, 200 periods
These are currently flat to slightly downward, suggesting neutral to bearish trend.
Price is under some of these EMAs, reinforcing the downward pressure.
🧠 Interpretation
The chart suggests a high-probability short trade from current levels.
The idea is to sell near the current price (under resistance) and aim for a move down to the next support zone.
It assumes the resistance zone will hold and price will move down without breaking above the stop-loss area.
⚠️ Caution
This setup requires confirmation (e.g., bearish candle or rejection wick).
Always use risk management and be aware of economic news that may affect gold.
✅ One-Line Title Suggestion
Gold (XAU/USD) Bearish Rejection Setup Targeting Key Support Zones
Let me know if you'd like a trade plan or a version of this for another timeframe.
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.