Gold (XAUUSD) has recently broken above a rising wedge resistance on the weekly timeframe but is now showing early signs of potential exhaustion. Price action is currently hovering around the $3,024 level after a strong bullish rally. However, historical patterns and structure suggest a possible bearish correction ahead.
📊 Key Technical Observations:
Rising Wedge Pattern: Price has been following an ascending channel with a sharp parabolic curve. The structure hints at overextension, making it vulnerable to a pullback.
Previous Corrections: Two notable corrections (-8.89% and -8.15%) provide a historical benchmark, reinforcing the possibility of a similar retracement.
Bearish Scenario:
A potential double-top formation and rejection zone is developing around the $3,050 area.
Target Zones:
TP1: $2,935.95 – first major support/resistance flip zone.
TP2: $2,782.94 – deeper retracement aligned with previous corrective structure.
🧠 Trading Bias:
Bearish bias in the short to medium term as gold may seek to correct before any continuation of the bullish trend.
📊 Key Technical Observations:
Rising Wedge Pattern: Price has been following an ascending channel with a sharp parabolic curve. The structure hints at overextension, making it vulnerable to a pullback.
Previous Corrections: Two notable corrections (-8.89% and -8.15%) provide a historical benchmark, reinforcing the possibility of a similar retracement.
Bearish Scenario:
A potential double-top formation and rejection zone is developing around the $3,050 area.
Target Zones:
TP1: $2,935.95 – first major support/resistance flip zone.
TP2: $2,782.94 – deeper retracement aligned with previous corrective structure.
🧠 Trading Bias:
Bearish bias in the short to medium term as gold may seek to correct before any continuation of the bullish trend.
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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.