Weekly - XAU/USD (Gold vs. US Dollar)
As shown, note the following:-
1. Price Action and Candlestick Patterns:
• The price has been in a strong upward trend but is showing signs of a pullback near a key resistance level.
• Consecutive red candles indicate a potential start of a price correction.
• The price is approaching a key resistance at 2989.813, with initial support at 2790.100 and stronger support at 2583.900.
2. Harmonic Pattern (Butterfly):
• A reversal harmonic pattern is visible on the chart, signaling a potential downward correction after a strong bullish move.
• The completion of this pattern increases the likelihood of a pullback toward the support levels mentioned.
3. Volume Indicator:
• There’s a noticeable decrease in trading volume despite the continued upward movement, reflecting weakening bullish momentum.
• A negative divergence between price and volume suggests a potential upcoming correction.
4. Relative Strength Index (RSI):
• The RSI reached overbought levels (above 70) and has started to decline, indicating possible profit-taking and a correction phase.
• A negative divergence between the price and the RSI supports the probability of a downward move.
As Future Outlook:
🔴 Bearish Scenario (Most Likely):
• A break below 2790.100 could open the way for a drop toward 2726.300 and then to 2583.900.
• Monitoring volume and RSI behavior is crucial to confirm continued downside movement.
🟢 Bullish Scenario (In Case of Breakout):
• A bullish Harami candle is clearly shown as breakout and weekly close above 2989.813 could push the price higher toward the 3100.000 level.
As shown, note the following:-
1. Price Action and Candlestick Patterns:
• The price has been in a strong upward trend but is showing signs of a pullback near a key resistance level.
• Consecutive red candles indicate a potential start of a price correction.
• The price is approaching a key resistance at 2989.813, with initial support at 2790.100 and stronger support at 2583.900.
2. Harmonic Pattern (Butterfly):
• A reversal harmonic pattern is visible on the chart, signaling a potential downward correction after a strong bullish move.
• The completion of this pattern increases the likelihood of a pullback toward the support levels mentioned.
3. Volume Indicator:
• There’s a noticeable decrease in trading volume despite the continued upward movement, reflecting weakening bullish momentum.
• A negative divergence between price and volume suggests a potential upcoming correction.
4. Relative Strength Index (RSI):
• The RSI reached overbought levels (above 70) and has started to decline, indicating possible profit-taking and a correction phase.
• A negative divergence between the price and the RSI supports the probability of a downward move.
As Future Outlook:
🔴 Bearish Scenario (Most Likely):
• A break below 2790.100 could open the way for a drop toward 2726.300 and then to 2583.900.
• Monitoring volume and RSI behavior is crucial to confirm continued downside movement.
🟢 Bullish Scenario (In Case of Breakout):
• A bullish Harami candle is clearly shown as breakout and weekly close above 2989.813 could push the price higher toward the 3100.000 level.
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.